MA

Masco Corporation stock research

Sep 30, 2024

FY2024 Q3

Masco (MAS) Gross Margin — Quarter Ended Sep 30, 2024

Revenue in the current quarter was unchanged from the same quarter last year but lower than the prior quarter. Gross profit and gross margin both decreased compared to both periods, while cost of revenue was stable sequentially and higher year-over-year.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

Revenue in the current quarter was unchanged from the same quarter last year but lower than the prior quarter. Gross profit and gross margin both decreased compared to both periods, while cost of revenue was stable sequentially and higher year-over-year.

  • The gross margin declined as cost of revenue remained stable relative to declining revenue sequentially and increased relative to flat revenue year-over-year. This relationship between cost of revenue and revenue was the most observable driver of the margin change.
  • Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all lower, while cost of revenue was unchanged. Compared to the same quarter one year earlier, revenue was unchanged, gross profit and gross margin were lower, and cost of revenue was higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

36.6%

Gross profit

$725.0M

Revenue

$2.0B

Cost of revenue

$1.3B

Quarter-over-quarter change

-1.0 pts

Year-over-year change

-1.0 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$1.9B$654.0M$1.2B34.8%
Mar 31, 2024$1.9B$685.0M$1.2B35.6%
Jun 30, 2024$2.1B$785.0M$1.3B37.5%
Sep 30, 2024$2.0B$725.0M$1.3B36.6%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2024

-1.0 pts

Year-over-year change

Sep 30, 2023

-1.0 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin declined as cost of revenue remained stable relative to declining revenue sequentially and increased relative to flat revenue year-over-year. This relationship between cost of revenue and revenue was the most observable driver of the margin change.

Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all lower, while cost of revenue was unchanged. Compared to the same quarter one year earlier, revenue was unchanged, gross profit and gross margin were lower, and cost of revenue was higher.

Monitor the relationship between cost of revenue and revenue, particularly whether cost of revenue continues to remain stable as revenue changes.