Nordson Corporation stock research
FY2023 Q1
Nordson (NDSN) Gross Margin — Quarter Ended Jan 31, 2023
Revenue was essentially flat compared to the same quarter one year earlier, while gross profit and gross margin both declined. The cost of revenue increased relative to the prior year, outpacing the slight revenue change and compressing margin.
Gross margin takeaway
Quarter ended Jan 31, 2023 · FY2023 Q1
Revenue was essentially flat compared to the same quarter one year earlier, while gross profit and gross margin both declined. The cost of revenue increased relative to the prior year, outpacing the slight revenue change and compressing margin.
- Gross margin improved sequentially from the immediately preceding quarter, driven by a proportionally larger decrease in cost of revenue relative to the decline in revenue. This indicates a favorable shift in the relationship between costs and revenue during the current quarter.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter one year earlier, revenue was stable, while gross profit and gross margin were lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
53.9%
Gross profit
$328.9M
Revenue
$610.5M
Cost of revenue
$281.6M
Quarter-over-quarter change
n/a
Year-over-year change
-2.0 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 |
|---|---|---|---|---|
| Jan 31, 2023 | $610.5M | $328.9M | $281.6M | 53.9% |
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
Jan 31, 2022
-2.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved sequentially from the immediately preceding quarter, driven by a proportionally larger decrease in cost of revenue relative to the decline in revenue. This indicates a favorable shift in the relationship between costs and revenue during the current quarter.
Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter one year earlier, revenue was stable, while gross profit and gross margin were lower.
Monitor the trajectory of cost of revenue relative to revenue, as its increase year-over-year was the primary factor behind the margin decline.