Altria Group, Inc. stock research
FY2023 Q3
Altria Group (MO) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was lower than both the prior quarter and the same quarter last year, while gross profit was slightly lower than the prior quarter but equal to the year-ago quarter. Cost of revenue was lower than both prior periods, resulting in an improved gross margin compared to both.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue was lower than both the prior quarter and the same quarter last year, while gross profit was slightly lower than the prior quarter but equal to the year-ago quarter. Cost of revenue was lower than both prior periods, resulting in an improved gross margin compared to both.
- The strongest observable driver of gross margin improvement was the shift in the relationship between cost of revenue and revenue, with cost of revenue declining relative to revenue compared to both prior periods.
- Compared to the prior quarter, gross margin improved as revenue decreased and cost of revenue decreased more substantially. Compared to the same quarter last year, gross margin improved as revenue was lower and cost of revenue was lower, while gross profit remained unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
58.9%
Gross profit
$3.7B
Revenue
$6.3B
Cost of revenue
$1.6B
Quarter-over-quarter change
+1.2 pts
Year-over-year change
+2.4 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 | $5.7B | $3.3B | $1.4B | 58.2% |
| Jun 30, 2023 | $6.5B | $3.8B | $1.7B | 57.7% |
| Sep 30, 2023 | $6.3B | $3.7B | $1.6B | 58.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+1.2 pts
Year-over-year change
Sep 30, 2022
+2.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of gross margin improvement was the shift in the relationship between cost of revenue and revenue, with cost of revenue declining relative to revenue compared to both prior periods.
Compared to the prior quarter, gross margin improved as revenue decreased and cost of revenue decreased more substantially. Compared to the same quarter last year, gross margin improved as revenue was lower and cost of revenue was lower, while gross profit remained unchanged.
Monitor the trend in cost of revenue relative to revenue, as its decline was the key factor in the margin improvement.