Packaging Corporation of America stock research
FY2024 Q2
Packaging Corporation of America (PKG) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue remained stable, leading to an improvement in gross margin. Compared to the same quarter last year, revenue was higher but gross profit was lower, with cost of revenue also higher, resulting in a weakened gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue remained stable, leading to an improvement in gross margin. Compared to the same quarter last year, revenue was higher but gross profit was lower, with cost of revenue also higher, resulting in a weakened gross margin.
- The strongest observable margin driver is the change in cost of revenue relative to revenue. In the current quarter, cost of revenue did not increase proportionally with revenue compared to the prior quarter, which supported gross margin improvement.
- Compared to the immediately preceding quarter, gross margin improved as revenue and gross profit grew while cost of revenue was stable. Compared to the same quarter one year earlier, gross margin weakened as revenue increased but gross profit declined and cost of revenue rose.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.1%
Gross profit
$437.7M
Revenue
$2.1B
Cost of revenue
$1.6B
Quarter-over-quarter change
+2.4 pts
Year-over-year change
-1.7 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 | $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% |
| Jun 30, 2024 | $2.1B | $437.7M | $1.6B | 21.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+2.4 pts
Year-over-year change
Jun 30, 2023
-1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in cost of revenue relative to revenue. In the current quarter, cost of revenue did not increase proportionally with revenue compared to the prior quarter, which supported gross margin improvement.
Compared to the immediately preceding quarter, gross margin improved as revenue and gross profit grew while cost of revenue was stable. Compared to the same quarter one year earlier, gross margin weakened as revenue increased but gross profit declined and cost of revenue rose.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters, as its movement has been a key factor in gross margin changes.