Martin Marietta Materials, Inc. stock research
FY2024 Q3
Martin Marietta Materials (MLM) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and cost of revenue both decreased compared to the prior quarter, while gross profit declined less proportionally, resulting in a higher gross margin. Compared to the same quarter last year, revenue and gross profit were lower, but gross margin remained relatively stable.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and cost of revenue both decreased compared to the prior quarter, while gross profit declined less proportionally, resulting in a higher gross margin. Compared to the same quarter last year, revenue and gross profit were lower, but gross margin remained relatively stable.
- The gross margin improved sequentially as the decline in cost of revenue outpaced the decline in revenue, allowing gross profit to hold up better. The year-over-year comparison shows a nearly unchanged margin despite lower revenue and gross profit.
- Compared to the immediately preceding quarter, gross margin was higher, driven by a proportionally larger reduction in cost of revenue relative to revenue. Versus the same quarter one year earlier, gross margin was essentially stable, with revenue and gross profit both lower but cost of revenue also reduced.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.1%
Gross profit
$421.0M
Revenue
$1.2B
Cost of revenue
$1.1B
Quarter-over-quarter change
+6.5 pts
Year-over-year change
+0.2 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $682.0M | $206.0M | $476.0M | 30.2% |
| Mar 31, 2024 | $1.1B | $250.0M | $979.0M | 23.7% |
| Jun 30, 2024 | $2.0B | $540.0M | $1.2B | 27.6% |
| Sep 30, 2024 | $1.2B | $421.0M | $1.1B | 34.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+6.5 pts
Year-over-year change
Sep 30, 2023
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially as the decline in cost of revenue outpaced the decline in revenue, allowing gross profit to hold up better. The year-over-year comparison shows a nearly unchanged margin despite lower revenue and gross profit.
Compared to the immediately preceding quarter, gross margin was higher, driven by a proportionally larger reduction in cost of revenue relative to revenue. Versus the same quarter one year earlier, gross margin was essentially stable, with revenue and gross profit both lower but cost of revenue also reduced.
Monitor the trajectory of cost of revenue relative to revenue, as the sequential improvement in gross margin was tied to a sharper decline in costs.