Mettler-Toledo International Inc. stock research
FY2024 Q2
Mettler-Toledo International (MTD) Gross Margin — Quarter Ended Jun 30, 2024
Revenue, gross profit, and cost of revenue all increased compared to the prior quarter, with gross profit rising more than costs, resulting in an improved gross margin. Compared to the same quarter a year earlier, revenue and gross profit were lower, but cost of revenue decreased more significantly, leading to a higher gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue, gross profit, and cost of revenue all increased compared to the prior quarter, with gross profit rising more than costs, resulting in an improved gross margin. Compared to the same quarter a year earlier, revenue and gross profit were lower, but cost of revenue decreased more significantly, leading to a higher gross margin.
- The strongest observable driver of gross margin is the relationship between revenue and cost of revenue. In both comparisons, cost of revenue moved less favorably than revenue, supporting margin expansion.
- Sequentially, gross margin strengthened from the prior quarter. Year over year, gross margin also improved, even as revenue declined, due to a larger reduction in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.7%
Gross profit
$565.7M
Revenue
$946.8M
Cost of revenue
$381.1M
Quarter-over-quarter change
+0.6 pts
Year-over-year change
+0.3 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $942.5M | $559.5M | $382.9M | 59.4% |
| Dec 31, 2023 | $935.0M | $551.6M | $383.4M | 59.0% |
| Mar 31, 2024 | $925.9M | $548.1M | $377.8M | 59.2% |
| Jun 30, 2024 | $946.8M | $565.7M | $381.1M | 59.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+0.6 pts
Year-over-year change
Jun 30, 2023
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of gross margin is the relationship between revenue and cost of revenue. In both comparisons, cost of revenue moved less favorably than revenue, supporting margin expansion.
Sequentially, gross margin strengthened from the prior quarter. Year over year, gross margin also improved, even as revenue declined, due to a larger reduction in cost of revenue.
Monitor the trajectory of cost of revenue relative to revenue in future quarters, as it is a key component of gross margin.