ML

Martin Marietta Materials, Inc. stock research

Dec 31, 2023

FY2023 Q4

Martin Marietta Materials (MLM) Gross Margin — Quarter Ended Dec 31, 2023

Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue declined less proportionally, resulting in a gross margin that weakened from the prior quarter but improved from the year-ago period.

Gross margin takeaway

Quarter ended Dec 31, 2023 · FY2023 Q4

Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue declined less proportionally, resulting in a gross margin that weakened from the prior quarter but improved from the year-ago period.

  • The gross margin improved compared to the same quarter one year earlier, driven by a lower cost of revenue relative to revenue, despite the absolute decline in both revenue and gross profit.
  • Compared to the immediately preceding quarter, revenue, gross profit, and gross margin all decreased. Compared to the same quarter one year earlier, revenue and gross profit were lower, but gross margin was higher.

Gross margin snapshot

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

Gross margin

30.2%

Gross profit

$206.0M

Revenue

$682.0M

Cost of revenue

$476.0M

Quarter-over-quarter change

-3.7 pts

Year-over-year change

+6.2 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$1.4B$303.0M$1.1B22.4%
Jun 30, 2023$1.8B$560.0M$1.3B30.8%
Sep 30, 2023$2.0B$676.0M$1.3B33.9%
Dec 31, 2023$682.0M$206.0M$476.0M30.2%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2023

-3.7 pts

Year-over-year change

Dec 31, 2022

+6.2 pts

What the margin says

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

The gross margin improved compared to the same quarter one year earlier, driven by a lower cost of revenue relative to revenue, despite the absolute decline in both revenue and gross profit.

Compared to the immediately preceding quarter, revenue, gross profit, and gross margin all decreased. Compared to the same quarter one year earlier, revenue and gross profit were lower, but gross margin was higher.

Monitor the trajectory of cost of revenue relative to revenue, as its proportion shifted favorably year-over-year but unfavorably quarter-over-quarter.