PH

PulteGroup, Inc. stock research

Jun 30, 2023

FY2023 Q2

PulteGroup (PHM) Gross Margin — Quarter Ended Jun 30, 2023

Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit rose versus the prior quarter but held level against the year-ago period. Cost of revenue also increased in both comparisons, and gross margin improved sequentially but weakened on an annual basis.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q2

Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit rose versus the prior quarter but held level against the year-ago period. Cost of revenue also increased in both comparisons, and gross margin improved sequentially but weakened on an annual basis.

  • The gross margin improvement from the prior quarter was driven by a proportionally smaller increase in cost of revenue relative to revenue. The year-over-year decline in gross margin reflects a larger relative increase in cost of revenue compared to revenue.
  • Compared to the prior quarter, revenue and gross profit were higher and gross margin improved. Versus the same quarter one year earlier, revenue was higher, gross profit was stable, and gross margin weakened.

Gross margin snapshot

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

Gross margin

31.0%

Gross profit

$1.3B

Revenue

$4.2B

Cost of revenue

$2.9B

Quarter-over-quarter change

+0.9 pts

Year-over-year change

-1.5 pts

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, 2023$3.6B$1.1B$2.5B30.2%
Jun 30, 2023$4.2B$1.3B$2.9B31.0%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2023

+0.9 pts

Year-over-year change

Jun 30, 2022

-1.5 pts

What the margin says

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

The gross margin improvement from the prior quarter was driven by a proportionally smaller increase in cost of revenue relative to revenue. The year-over-year decline in gross margin reflects a larger relative increase in cost of revenue compared to revenue.

Compared to the prior quarter, revenue and gross profit were higher and gross margin improved. Versus the same quarter one year earlier, revenue was higher, gross profit was stable, and gross margin weakened.

Monitor the trend in cost of revenue relative to revenue, as its movement strongly influenced both sequential and annual gross margin changes.