Nordson Corporation stock research
FY2024 Q3
Nordson (NDSN) Gross Margin — Quarter Ended Jul 31, 2024
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also rose, but the cost of revenue grew at a different rate, leading to a gross margin that was lower than the prior quarter but higher than the year-ago period.
Gross margin takeaway
Quarter ended Jul 31, 2024 · FY2024 Q3
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also rose, but the cost of revenue grew at a different rate, leading to a gross margin that was lower than the prior quarter but higher than the year-ago period.
- The strongest observable margin driver is the varying relationship between revenue and cost of revenue changes across periods: year-over-year margin improvement coincided with revenue growing faster than cost, while the sequential decline coincided with cost growing faster than revenue.
- Compared to the immediately preceding quarter, gross margin weakened slightly as cost of revenue increased more than revenue. Compared to the same quarter one year earlier, gross margin improved as revenue growth outpaced cost growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
55.8%
Gross profit
$369.0M
Revenue
$661.6M
Cost of revenue
$292.6M
Quarter-over-quarter change
-0.5 pts
Year-over-year change
+0.2 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 |
|---|---|---|---|---|
| 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% |
| Jul 31, 2024 | $661.6M | $369.0M | $292.6M | 55.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2024
-0.5 pts
Year-over-year change
Jul 31, 2023
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the varying relationship between revenue and cost of revenue changes across periods: year-over-year margin improvement coincided with revenue growing faster than cost, while the sequential decline coincided with cost growing faster than revenue.
Compared to the immediately preceding quarter, gross margin weakened slightly as cost of revenue increased more than revenue. Compared to the same quarter one year earlier, gross margin improved as revenue growth outpaced cost growth.
Monitor the trend in revenue growth relative to cost of revenue growth, as this dynamic directly influences gross margin direction. Additionally, the filing notes improvements in accounts receivable and inventory, which may affect cash flow and operational efficiency.