PC

PACCAR Inc stock research

Sep 30, 2024

FY2024 Q3

PACCAR (PCAR) Gross Margin — Quarter Ended Sep 30, 2024

In the current quarter, revenue and gross profit both decreased compared to the prior quarter, while cost of revenue also decreased. The gross margin weakened as a result, and revenue was lower than the same quarter last year, though gross profit and cost of revenue for that period are not available.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

In the current quarter, revenue and gross profit both decreased compared to the prior quarter, while cost of revenue also decreased. The gross margin weakened as a result, and revenue was lower than the same quarter last year, though gross profit and cost of revenue for that period are not available.

  • The strongest observable driver of the gross margin change is the shift in the relationship between revenue and cost of revenue: cost of revenue declined less than revenue, causing the margin to contract.
  • Sequentially, gross margin weakened from the prior quarter. Year-over-year comparison is limited because gross profit and cost of revenue are missing for the same quarter last year; only revenue was lower.

Gross margin snapshot

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

Gross margin

22.0%

Gross profit

$1.8B

Revenue

$8.2B

Cost of revenue

$6.4B

Quarter-over-quarter change

-0.8 pts

Year-over-year change

n/a

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2024$8.7B$2.1B$6.7B23.7%
Jun 30, 2024$8.8B$2.0B$6.8B22.8%
Sep 30, 2024$8.2B$1.8B$6.4B22.0%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2024

-0.8 pts

Year-over-year change

Sep 30, 2023

n/a

What the margin says

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

The strongest observable driver of the gross margin change is the shift in the relationship between revenue and cost of revenue: cost of revenue declined less than revenue, causing the margin to contract.

Sequentially, gross margin weakened from the prior quarter. Year-over-year comparison is limited because gross profit and cost of revenue are missing for the same quarter last year; only revenue was lower.

Monitor the trend in cost of revenue relative to revenue in upcoming quarters to assess whether margin pressure persists.