Nordson Corporation stock research
FY2024 Q4
Nordson (NDSN) Gross Margin — Quarter Ended Oct 31, 2024
Revenue, gross profit, and cost of revenue all moved higher compared to both the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter last year, reflecting that the increase in gross profit outpaced the increase in revenue on a year-over-year basis.
Gross margin takeaway
Quarter ended Oct 31, 2024 · FY2024 Q4
Revenue, gross profit, and cost of revenue all moved higher compared to both the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter last year, reflecting that the increase in gross profit outpaced the increase in revenue on a year-over-year basis.
- The strongest observable margin driver this quarter is the year-over-year improvement in gross margin, as gross profit grew more quickly than revenue compared to the same quarter last year.
- Compared to the immediately preceding quarter, gross margin weakened as cost of revenue increased proportionally more than gross profit. Compared to the same quarter one year earlier, gross margin improved as gross profit grew faster than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
54.1%
Gross profit
$402.8M
Revenue
$744.5M
Cost of revenue
$341.7M
Quarter-over-quarter change
-1.7 pts
Year-over-year change
+0.7 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, 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% |
| Oct 31, 2024 | $744.5M | $402.8M | $341.7M | 54.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 31, 2024
-1.7 pts
Year-over-year change
Oct 31, 2023
+0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver this quarter is the year-over-year improvement in gross margin, as gross profit grew more quickly than revenue compared to the same quarter last year.
Compared to the immediately preceding quarter, gross margin weakened as cost of revenue increased proportionally more than gross profit. Compared to the same quarter one year earlier, gross margin improved as gross profit grew faster than revenue.
Monitor the relationship between cost of revenue and revenue in future quarters, as the quarter-over-quarter weakening in gross margin was driven by a relatively larger increase in cost of revenue.