Martin Marietta Materials, Inc. stock research
FY2023 Q3
Martin Marietta Materials (MLM) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue remained stable. Gross margin improved sequentially and year-over-year, reflecting a stronger relationship between revenue growth and gross profit expansion relative to cost of revenue.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue remained stable. Gross margin improved sequentially and year-over-year, reflecting a stronger relationship between revenue growth and gross profit expansion relative to cost of revenue.
- The improvement in gross margin was driven by gross profit growing faster than revenue, with cost of revenue unchanged. This indicates that the increase in revenue translated more efficiently into gross profit.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.9%
Gross profit
$676.0M
Revenue
$2.0B
Cost of revenue
$1.3B
Quarter-over-quarter change
+3.1 pts
Year-over-year change
+7.0 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $1.4B | $303.0M | $1.1B | 22.4% |
| Jun 30, 2023 | $1.8B | $560.0M | $1.3B | 30.8% |
| Sep 30, 2023 | $2.0B | $676.0M | $1.3B | 33.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+3.1 pts
Year-over-year change
Sep 30, 2022
+7.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was driven by gross profit growing faster than revenue, with cost of revenue unchanged. This indicates that the increase in revenue translated more efficiently into gross profit.
Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved. Versus the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved.
Monitor whether cost of revenue remains stable in future quarters, as it has been unchanged despite revenue growth.