Parker-Hannifin Corporation stock research
FY2023 Q4
Parker-Hannifin (PH) Gross Margin — Quarter Ended Jun 30, 2023
Revenue was stable compared to the prior quarter, while gross profit improved and cost of revenue remained unchanged, leading to a higher gross margin. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, with cost of revenue also higher.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q4
Revenue was stable compared to the prior quarter, while gross profit improved and cost of revenue remained unchanged, leading to a higher gross margin. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were all higher, with cost of revenue also higher.
- The gross margin improved sequentially and year-over-year, driven by gross profit growing faster than revenue relative to cost of revenue. The strongest observable driver is the increase in gross profit relative to revenue, as cost of revenue did not rise proportionally.
- Compared to the immediately preceding quarter, gross margin was higher, with gross profit higher on stable revenue. Compared to the same quarter one year earlier, gross margin was higher, with both revenue and gross profit higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.0%
Gross profit
$1.8B
Revenue
$5.1B
Cost of revenue
$3.3B
Quarter-over-quarter change
+2.0 pts
Year-over-year change
+2.1 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $5.1B | $1.7B | $3.3B | 34.0% |
| Jun 30, 2023 | $5.1B | $1.8B | $3.3B | 36.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+2.0 pts
Year-over-year change
Jun 30, 2022
+2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially and year-over-year, driven by gross profit growing faster than revenue relative to cost of revenue. The strongest observable driver is the increase in gross profit relative to revenue, as cost of revenue did not rise proportionally.
Compared to the immediately preceding quarter, gross margin was higher, with gross profit higher on stable revenue. Compared to the same quarter one year earlier, gross margin was higher, with both revenue and gross profit higher.
Monitor whether cost of revenue remains stable relative to revenue in future quarters, as it was unchanged sequentially despite higher gross profit.