Nordson Corporation stock research
FY2023 Q2
Nordson (NDSN) Gross Margin — Quarter Ended Apr 30, 2023
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin improved slightly from the prior quarter but weakened compared to the same quarter last year.
Gross margin takeaway
Quarter ended Apr 30, 2023 · FY2023 Q2
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue also rose. Gross margin improved slightly from the prior quarter but weakened compared to the same quarter last year.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue compared to the prior quarter, leading to a higher gross margin.
- Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was higher but gross profit was lower, and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
54.2%
Gross profit
$352.1M
Revenue
$650.2M
Cost of revenue
$298.0M
Quarter-over-quarter change
+0.3 pts
Year-over-year change
-2.1 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% |
| Apr 30, 2023 | $650.2M | $352.1M | $298.0M | 54.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2023
+0.3 pts
Year-over-year change
Apr 30, 2022
-2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth. Revenue increased more than cost of revenue compared to the prior quarter, leading to a higher gross margin.
Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was higher but gross profit was lower, and gross margin weakened.
Monitor the trend in cost of revenue relative to revenue, as its growth rate has outpaced revenue on a year-over-year basis.