NU

Nucor Corporation stock research

Jul 1, 2023

FY2022 Q3

Nucor (NUE) Gross Margin — Quarter Ended Jul 1, 2023

Revenue increased compared to the prior quarter, while gross profit rose and cost of revenue also increased. Gross margin improved from the previous quarter but weakened relative to the same quarter last year.

Gross margin takeaway

Quarter ended Jul 1, 2023 · FY2022 Q3

Revenue increased compared to the prior quarter, while gross profit rose and cost of revenue also increased. Gross margin improved from the previous quarter but weakened relative to the same quarter last year.

  • The margin improvement was strongly associated with revenue growing at a faster pace than cost of revenue, as revenue increased more than the cost of revenue did from the prior quarter.
  • Compared to the previous quarter, revenue, gross profit, and gross margin were higher, while cost of revenue was also higher. Compared to the same quarter a year ago, revenue and gross profit were lower, cost of revenue was slightly higher, and gross margin weakened.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

26.3%

Gross profit

$2.5B

Revenue

$9.5B

Cost of revenue

$7.0B

Quarter-over-quarter change

+3.3 pts

Year-over-year change

-6.8 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Apr 1, 2023$8.7B$2.0B$6.7B22.9%
Jul 1, 2023$9.5B$2.5B$7.0B26.3%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Apr 1, 2023

+3.3 pts

Year-over-year change

Oct 2, 2021

-6.8 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The margin improvement was strongly associated with revenue growing at a faster pace than cost of revenue, as revenue increased more than the cost of revenue did from the prior quarter.

Compared to the previous quarter, revenue, gross profit, and gross margin were higher, while cost of revenue was also higher. Compared to the same quarter a year ago, revenue and gross profit were lower, cost of revenue was slightly higher, and gross margin weakened.

Monitor the company's liquidity position and credit ratings, which were highlighted in the filing as key strategic advantages.

NUE Gross Margin — Quarter Ended Jul 1, 2023