MO

Altria Group, Inc. stock research

Sep 30, 2024

FY2024 Q3

Altria Group (MO) Gross Margin — Quarter Ended Sep 30, 2024

Revenue was stable compared to the same quarter last year and slightly higher than the prior quarter. Gross profit increased, cost of revenue was lower, and gross margin improved both sequentially and year-over-year.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

Revenue was stable compared to the same quarter last year and slightly higher than the prior quarter. Gross profit increased, cost of revenue was lower, and gross margin improved both sequentially and year-over-year.

  • The strongest observable driver was the reduction in cost of revenue relative to revenue. Cost of revenue was lower than both the prior quarter and the year-ago quarter, while revenue was broadly stable, leading to gross margin expansion.
  • Compared with the immediately preceding quarter, revenue was slightly higher, cost of revenue was lower, and gross profit and gross margin both improved. Compared with the same quarter one year earlier, revenue was unchanged, cost of revenue was lower, and gross profit and gross margin were higher.

Gross margin snapshot

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

Gross margin

60.8%

Gross profit

$3.8B

Revenue

$6.3B

Cost of revenue

$1.5B

Quarter-over-quarter change

+1.7 pts

Year-over-year change

+1.9 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$6.0B$3.5B$1.5B58.6%
Mar 31, 2024$5.6B$3.3B$1.4B58.8%
Jun 30, 2024$6.2B$3.7B$1.6B59.2%
Sep 30, 2024$6.3B$3.8B$1.5B60.8%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2024

+1.7 pts

Year-over-year change

Sep 30, 2023

+1.9 pts

What the margin says

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

The strongest observable driver was the reduction in cost of revenue relative to revenue. Cost of revenue was lower than both the prior quarter and the year-ago quarter, while revenue was broadly stable, leading to gross margin expansion.

Compared with the immediately preceding quarter, revenue was slightly higher, cost of revenue was lower, and gross profit and gross margin both improved. Compared with the same quarter one year earlier, revenue was unchanged, cost of revenue was lower, and gross profit and gross margin were higher.

Monitor the multi-phase Optimize & Accelerate initiative, which aims to modernize operations, centralize work, and streamline processes, as it may influence future cost structures and margin trends.