Nucor Corporation stock research
FY2024 Q3
Nucor (NUE) Gross Margin — Quarter Ended Sep 28, 2024
Revenue decreased sequentially and year over year, while cost of revenue declined at a slower pace, resulting in a lower gross profit and a weakened gross margin. The gross margin contracted compared to both the prior quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Sep 28, 2024 · FY2024 Q3
Revenue decreased sequentially and year over year, while cost of revenue declined at a slower pace, resulting in a lower gross profit and a weakened gross margin. The gross margin contracted compared to both the prior quarter and the same quarter last year.
- The relationship between revenue and cost of revenue drove the gross margin decline; revenue fell more sharply than cost of revenue. The strongest observable driver is the proportionally smaller reduction in cost of revenue relative to the decline in revenue.
- Gross margin weakened sequentially and year over year. Compared to the immediate prior quarter, gross profit was lower on lower revenue with a smaller decline in cost of revenue. Versus the same quarter one year earlier, gross profit and revenue were both lower while cost of revenue was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
10.2%
Gross profit
$758.0M
Revenue
$7.4B
Cost of revenue
$6.7B
Quarter-over-quarter change
-4.6 pts
Year-over-year change
-11.7 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $8.8B | $1.9B | $6.9B | 21.9% |
| Mar 30, 2024 | $8.1B | $1.5B | $6.6B | 18.7% |
| Jun 29, 2024 | $8.1B | $1.2B | $6.9B | 14.8% |
| Sep 28, 2024 | $7.4B | $758.0M | $6.7B | 10.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 29, 2024
-4.6 pts
Year-over-year change
Sep 30, 2023
-11.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue drove the gross margin decline; revenue fell more sharply than cost of revenue. The strongest observable driver is the proportionally smaller reduction in cost of revenue relative to the decline in revenue.
Gross margin weakened sequentially and year over year. Compared to the immediate prior quarter, gross profit was lower on lower revenue with a smaller decline in cost of revenue. Versus the same quarter one year earlier, gross profit and revenue were both lower while cost of revenue was slightly lower.
Monitor the trajectory of cost of revenue relative to revenue, as its slower decline amplified the gross margin compression.