Packaging Corporation of America stock research
FY2024 Q1
Packaging Corporation of America (PKG) Gross Margin — Quarter Ended Mar 31, 2024
Revenue was stable, but gross profit decreased, and cost of revenue increased, resulting in a lower gross margin. Compared with the prior quarter and the same quarter last year, gross margin weakened.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue was stable, but gross profit decreased, and cost of revenue increased, resulting in a lower gross margin. Compared with the prior quarter and the same quarter last year, gross margin weakened.
- The decline in gross margin was driven by a combination of slightly higher revenue growth not offsetting a larger increase in cost of revenue, leading to a lower gross profit. The relationship between cost and revenue was the primary factor.
- Gross margin was lower than both the immediately preceding quarter and the same quarter one year earlier. Revenue was essentially unchanged from the year-ago period, but gross profit was lower and cost of revenue was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
18.7%
Gross profit
$370.4M
Revenue
$2.0B
Cost of revenue
$1.6B
Quarter-over-quarter change
-2.5 pts
Year-over-year change
-3.1 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $2.0B | $444.7M | $1.5B | 22.8% |
| Sep 30, 2023 | $1.9B | $412.7M | $1.5B | 21.3% |
| Dec 31, 2023 | $1.9B | $410.1M | $1.5B | 21.2% |
| Mar 31, 2024 | $2.0B | $370.4M | $1.6B | 18.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-2.5 pts
Year-over-year change
Mar 31, 2023
-3.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross margin was driven by a combination of slightly higher revenue growth not offsetting a larger increase in cost of revenue, leading to a lower gross profit. The relationship between cost and revenue was the primary factor.
Gross margin was lower than both the immediately preceding quarter and the same quarter one year earlier. Revenue was essentially unchanged from the year-ago period, but gross profit was lower and cost of revenue was higher.
The trajectory of cost of revenue relative to revenue should be monitored for any continuation of the margin compression observed in the current quarter.