Nordson Corporation stock research
FY2023 Q4
Nordson (NDSN) Gross Margin — Quarter Ended Oct 31, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter a year earlier, while cost of revenue also rose in both periods. Gross margin weakened relative to the prior quarter but improved relative to the year-ago quarter.
Gross margin takeaway
Quarter ended Oct 31, 2023 · FY2023 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter a year earlier, while cost of revenue also rose in both periods. Gross margin weakened relative to the prior quarter but improved relative to the year-ago quarter.
- The most noticeable driver of gross margin was the relative movement between cost of revenue and revenue. On a sequential basis, cost of revenue grew faster than revenue, compressing margin; on a year-over-year basis, revenue grew slightly faster than cost, supporting margin.
- Compared to the immediately preceding quarter, gross margin decreased as cost of revenue rose more sharply than revenue. Compared to the same quarter one year earlier, gross margin increased modestly, with revenue growing at a slightly higher pace than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
53.4%
Gross profit
$384.1M
Revenue
$719.3M
Cost of revenue
$335.2M
Quarter-over-quarter change
-2.1 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 |
|---|---|---|---|---|
| Jan 31, 2023 | $610.5M | $328.9M | $281.6M | 53.9% |
| Apr 30, 2023 | $650.2M | $352.1M | $298.0M | 54.2% |
| Jul 31, 2023 | $648.7M | $360.3M | $288.4M | 55.5% |
| Oct 31, 2023 | $719.3M | $384.1M | $335.2M | 53.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 31, 2023
-2.1 pts
Year-over-year change
Oct 31, 2022
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most noticeable driver of gross margin was the relative movement between cost of revenue and revenue. On a sequential basis, cost of revenue grew faster than revenue, compressing margin; on a year-over-year basis, revenue grew slightly faster than cost, supporting margin.
Compared to the immediately preceding quarter, gross margin decreased as cost of revenue rose more sharply than revenue. Compared to the same quarter one year earlier, gross margin increased modestly, with revenue growing at a slightly higher pace than cost of revenue.
Monitor the growth rate of cost of revenue relative to revenue growth, particularly whether its pace continues to diverge.