PulteGroup, Inc. stock research
FY2024 Q3
PulteGroup (PHM) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit both decreased from the prior quarter, while cost of revenue also declined. Gross margin weakened compared to the previous quarter but improved slightly from the same quarter a year earlier, reflecting a mixed relationship among the metrics.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit both decreased from the prior quarter, while cost of revenue also declined. Gross margin weakened compared to the previous quarter but improved slightly from the same quarter a year earlier, reflecting a mixed relationship among the metrics.
- Gross margin declined sequentially as revenue fell faster than cost of revenue, but improved year-over-year as revenue growth outpaced cost increases. The sequential weakening is the most notable driver.
- Compared to the prior quarter, gross margin weakened despite lower cost of revenue, driven by a proportionally larger drop in revenue. Versus the same quarter last year, gross margin strengthened slightly with higher revenue and gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
30.4%
Gross profit
$1.4B
Revenue
$4.5B
Cost of revenue
$3.1B
Quarter-over-quarter change
-1.0 pts
Year-over-year change
-0.3 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $4.0B | $1.2B | $2.8B | 30.7% |
| Mar 31, 2024 | $3.9B | $1.2B | $2.7B | 31.0% |
| Jun 30, 2024 | $4.6B | $1.4B | $3.2B | 31.4% |
| Sep 30, 2024 | $4.5B | $1.4B | $3.1B | 30.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-1.0 pts
Year-over-year change
Sep 30, 2023
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin declined sequentially as revenue fell faster than cost of revenue, but improved year-over-year as revenue growth outpaced cost increases. The sequential weakening is the most notable driver.
Compared to the prior quarter, gross margin weakened despite lower cost of revenue, driven by a proportionally larger drop in revenue. Versus the same quarter last year, gross margin strengthened slightly with higher revenue and gross profit.
Monitor the trend in revenue relative to cost of revenue, as the sequential quarter showed revenue declining more sharply than cost.