Martin Marietta Materials, Inc. stock research
FY2024 Q1
Martin Marietta Materials (MLM) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened from the prior quarter but improved relative to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened from the prior quarter but improved relative to the same quarter one year earlier.
- The gross margin improved year-over-year despite lower revenue, indicating that cost of revenue declined at a faster rate than revenue. This relative cost efficiency was the strongest observable driver of margin expansion.
- Compared to the prior quarter, revenue was higher but gross profit was lower, and cost of revenue increased substantially, leading to a weakened gross margin. Versus the same quarter last year, revenue was lower, gross profit was lower, and cost of revenue was lower, resulting in an improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
23.7%
Gross profit
$250.0M
Revenue
$1.1B
Cost of revenue
$979.0M
Quarter-over-quarter change
-6.5 pts
Year-over-year change
+1.3 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $1.8B | $560.0M | $1.3B | 30.8% |
| Sep 30, 2023 | $2.0B | $676.0M | $1.3B | 33.9% |
| Dec 31, 2023 | $682.0M | $206.0M | $476.0M | 30.2% |
| Mar 31, 2024 | $1.1B | $250.0M | $979.0M | 23.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-6.5 pts
Year-over-year change
Mar 31, 2023
+1.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved year-over-year despite lower revenue, indicating that cost of revenue declined at a faster rate than revenue. This relative cost efficiency was the strongest observable driver of margin expansion.
Compared to the prior quarter, revenue was higher but gross profit was lower, and cost of revenue increased substantially, leading to a weakened gross margin. Versus the same quarter last year, revenue was lower, gross profit was lower, and cost of revenue was lower, resulting in an improved gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as its decline rate was a key factor in the year-over-year margin improvement.