3M Company stock research
FY2023 Q1
3M (MMM) Gross Margin — Quarter Ended Mar 31, 2023
Gross margin improved significantly from the prior quarter but weakened compared to the same quarter last year. Revenue was lower than the prior year quarter but higher than the prior quarter.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Gross margin improved significantly from the prior quarter but weakened compared to the same quarter last year. Revenue was lower than the prior year quarter but higher than the prior quarter.
- The movement in gross margin was driven primarily by the relative changes in revenue and cost of revenue. Compared to the prior year quarter, revenue declined more sharply than cost of revenue, compressing the margin.
- Compared to the prior quarter, the gross margin notably improved from a negative level to a positive one. Year over year, the gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.2%
Gross profit
$2.3B
Revenue
$6.1B
Cost of revenue
$3.7B
Quarter-over-quarter change
n/a
Year-over-year change
-7.2 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $6.1B | $2.3B | $3.7B | 38.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
-7.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The movement in gross margin was driven primarily by the relative changes in revenue and cost of revenue. Compared to the prior year quarter, revenue declined more sharply than cost of revenue, compressing the margin.
Compared to the prior quarter, the gross margin notably improved from a negative level to a positive one. Year over year, the gross margin was lower.
Monitor the ongoing relationship between revenue and cost of revenue, particularly whether revenue trends can stabilize or improve relative to costs.