Parker-Hannifin Corporation stock research
FY2024 Q1
Parker-Hannifin (PH) Gross Margin — Quarter Ended Sep 30, 2023
Revenue less cost of revenue yields gross profit, and gross margin expresses this profit as a share of revenue. This quarter's gross margin improved compared to the same quarter last year and was relatively stable versus the prior quarter.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2024 Q1
Revenue less cost of revenue yields gross profit, and gross margin expresses this profit as a share of revenue. This quarter's gross margin improved compared to the same quarter last year and was relatively stable versus the prior quarter.
- The strongest observable margin driver is the year-over-year expansion in gross margin, which reflects a larger increase in gross profit relative to the increase in revenue. The filing notes that revenue growth was supported by higher sales in both segments and acquisitions.
- Compared to the preceding quarter, revenue was lower while gross profit was similar, resulting in a slightly improved gross margin. Compared to the same quarter one year earlier, both revenue and gross profit were higher, and gross margin improved notably.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.1%
Gross profit
$1.8B
Revenue
$4.8B
Cost of revenue
$3.1B
Quarter-over-quarter change
+0.1 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% |
| Sep 30, 2023 | $4.8B | $1.8B | $3.1B | 36.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.1 pts
Year-over-year change
Sep 30, 2022
+2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the year-over-year expansion in gross margin, which reflects a larger increase in gross profit relative to the increase in revenue. The filing notes that revenue growth was supported by higher sales in both segments and acquisitions.
Compared to the preceding quarter, revenue was lower while gross profit was similar, resulting in a slightly improved gross margin. Compared to the same quarter one year earlier, both revenue and gross profit were higher, and gross margin improved notably.
Monitor the sustainability of the gross margin level given the decline in revenue from the prior quarter.