Nordson Corporation stock research
FY2024 Q2
Nordson (NDSN) Gross Margin — Quarter Ended Apr 30, 2024
Revenue was essentially stable compared to the same quarter last year, while gross profit improved and cost of revenue declined, resulting in a higher gross margin. Sequentially, revenue increased, gross profit rose, cost of revenue was unchanged, and gross margin improved.
Gross margin takeaway
Quarter ended Apr 30, 2024 · FY2024 Q2
Revenue was essentially stable compared to the same quarter last year, while gross profit improved and cost of revenue declined, resulting in a higher gross margin. Sequentially, revenue increased, gross profit rose, cost of revenue was unchanged, and gross margin improved.
- The strongest observable margin driver was the reduction in cost of revenue relative to the prior year quarter, which directly lifted gross profit and margin. This quarter's cost of revenue was lower than both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was unchanged, and gross margin improved. Compared to the same quarter one year earlier, revenue was essentially flat, gross profit was higher, cost of revenue was lower, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
56.2%
Gross profit
$365.9M
Revenue
$650.6M
Cost of revenue
$284.8M
Quarter-over-quarter change
+1.2 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 |
|---|---|---|---|---|
| Jul 31, 2023 | $648.7M | $360.3M | $288.4M | 55.5% |
| Oct 31, 2023 | $719.3M | $384.1M | $335.2M | 53.4% |
| Jan 31, 2024 | $633.2M | $348.4M | $284.8M | 55.0% |
| Apr 30, 2024 | $650.6M | $365.9M | $284.8M | 56.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2024
+1.2 pts
Year-over-year change
Apr 30, 2023
+2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the reduction in cost of revenue relative to the prior year quarter, which directly lifted gross profit and margin. This quarter's cost of revenue was lower than both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was unchanged, and gross margin improved. Compared to the same quarter one year earlier, revenue was essentially flat, gross profit was higher, cost of revenue was lower, and gross margin improved.
Monitor whether cost of revenue can remain at or below the current level in future quarters.