PH

PulteGroup, Inc. stock research

Sep 30, 2023

FY2023 Q3

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

Revenue decreased compared to the prior quarter, while gross profit and cost of revenue also declined, resulting in a slightly lower gross margin. Versus the same quarter last year, revenue was higher, gross profit was stable, and cost of revenue increased, leading to a lower gross margin.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q3

Revenue decreased compared to the prior quarter, while gross profit and cost of revenue also declined, resulting in a slightly lower gross margin. Versus the same quarter last year, revenue was higher, gross profit was stable, and cost of revenue increased, leading to a lower gross margin.

  • The gross margin weakened slightly from the prior quarter and more notably from the year-ago quarter, driven by a proportionally larger increase in cost of revenue relative to revenue over the year-ago comparison.
  • Compared to the prior quarter, revenue, gross profit, and cost of revenue were all lower, with gross margin narrowing marginally. Compared to the same quarter last year, revenue was higher, gross profit was essentially unchanged, and cost of revenue was higher, resulting in a lower gross margin.

Gross margin snapshot

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

Gross margin

30.7%

Gross profit

$1.2B

Revenue

$4.0B

Cost of revenue

$2.8B

Quarter-over-quarter change

-0.3 pts

Year-over-year change

-0.9 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%
Sep 30, 2023$4.0B$1.2B$2.8B30.7%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2023

-0.3 pts

Year-over-year change

Sep 30, 2022

-0.9 pts

What the margin says

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

The gross margin weakened slightly from the prior quarter and more notably from the year-ago quarter, driven by a proportionally larger increase in cost of revenue relative to revenue over the year-ago comparison.

Compared to the prior quarter, revenue, gross profit, and cost of revenue were all lower, with gross margin narrowing marginally. Compared to the same quarter last year, revenue was higher, gross profit was essentially unchanged, and cost of revenue was higher, resulting in a lower gross margin.

Monitor the trajectory of cost of revenue relative to revenue, as its growth outpaced revenue in the year-ago comparison and contributed to margin compression.

PHM Gross Margin — Quarter Ended Sep 30, 2023