Parker-Hannifin Corporation stock research
FY2024 Q2
Parker-Hannifin (PH) Gross Margin — Quarter Ended Dec 31, 2023
Revenue was stable compared to the prior quarter, while gross profit and gross margin both weakened slightly. Compared to the same quarter last year, revenue was higher, gross profit improved substantially, and gross margin strengthened notably.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2024 Q2
Revenue was stable compared to the prior quarter, while gross profit and gross margin both weakened slightly. Compared to the same quarter last year, revenue was higher, gross profit improved substantially, and gross margin strengthened notably.
- The strongest observable margin driver is the year-over-year improvement in gross margin, which rose from a lower level a year ago to a higher level in the current quarter, driven by a larger increase in gross profit relative to the change in revenue.
- Compared to the immediately preceding quarter, revenue was essentially unchanged, gross profit was slightly lower, and gross margin weakened modestly. Compared to the same quarter one year earlier, revenue was higher, gross profit was markedly higher, and gross margin improved significantly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.7%
Gross profit
$1.7B
Revenue
$4.8B
Cost of revenue
$3.1B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
+4.9 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% |
| Dec 31, 2023 | $4.8B | $1.7B | $3.1B | 35.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-0.4 pts
Year-over-year change
Dec 31, 2022
+4.9 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 improvement in gross margin, which rose from a lower level a year ago to a higher level in the current quarter, driven by a larger increase in gross profit relative to the change in revenue.
Compared to the immediately preceding quarter, revenue was essentially unchanged, gross profit was slightly lower, and gross margin weakened modestly. Compared to the same quarter one year earlier, revenue was higher, gross profit was markedly higher, and gross margin improved significantly.
Monitor the trajectory of gross margin in the next quarter to see if the slight weakening from the prior quarter continues or stabilizes.