PH

Parker-Hannifin Corporation stock research

Jun 30, 2024

FY2024 Q4

Parker-Hannifin (PH) Gross Margin — Quarter Ended Jun 30, 2024

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was stable. Gross margin improved slightly from the prior quarter but was marginally lower than a year ago.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q4

Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue was stable. Gross margin improved slightly from the prior quarter but was marginally lower than a year ago.

  • Gross profit rose faster than cost of revenue relative to the prior quarter, driving the margin improvement. Compared to last year, cost of revenue grew in line with revenue, resulting in a nearly stable margin.
  • Gross margin improved by a small amount from the prior quarter, indicating a slight operating efficiency gain. Compared to the same quarter last year, the margin was marginally lower, reflecting a minor weakening in cost leverage.

Gross margin snapshot

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

Gross margin

35.9%

Gross profit

$1.9B

Revenue

$5.2B

Cost of revenue

$3.3B

Quarter-over-quarter change

+0.6 pts

Year-over-year change

-0.0 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$4.8B$1.8B$3.1B36.1%
Dec 31, 2023$4.8B$1.7B$3.1B35.7%
Mar 31, 2024$5.1B$1.8B$3.3B35.4%
Jun 30, 2024$5.2B$1.9B$3.3B35.9%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2024

+0.6 pts

Year-over-year change

Jun 30, 2023

-0.0 pts

What the margin says

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

Gross profit rose faster than cost of revenue relative to the prior quarter, driving the margin improvement. Compared to last year, cost of revenue grew in line with revenue, resulting in a nearly stable margin.

Gross margin improved by a small amount from the prior quarter, indicating a slight operating efficiency gain. Compared to the same quarter last year, the margin was marginally lower, reflecting a minor weakening in cost leverage.

Monitor whether cost of revenue can remain stable relative to revenue in future quarters.