Pentair plc stock research
FY2023 Q1
Pentair (PNR) Gross Margin — Quarter Ended Mar 31, 2023
Revenue was essentially unchanged from the prior quarter and higher than the same quarter a year ago. Gross profit and gross margin improved both sequentially and compared to the year-ago period, as cost of revenue declined while revenue held steady or increased.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue was essentially unchanged from the prior quarter and higher than the same quarter a year ago. Gross profit and gross margin improved both sequentially and compared to the year-ago period, as cost of revenue declined while revenue held steady or increased.
- The gross margin improvement was driven by a reduction in cost of revenue relative to revenue, which allowed gross profit to rise even as revenue remained stable sequentially.
- Compared to the prior quarter, gross margin strengthened as cost of revenue fell while revenue held steady. Versus the same quarter last year, gross margin also improved, reflecting higher revenue and lower cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.1%
Gross profit
$381.8M
Revenue
$1.0B
Cost of revenue
$646.8M
Quarter-over-quarter change
n/a
Year-over-year change
+3.9 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $1.0B | $381.8M | $646.8M | 37.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+3.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by a reduction in cost of revenue relative to revenue, which allowed gross profit to rise even as revenue remained stable sequentially.
Compared to the prior quarter, gross margin strengthened as cost of revenue fell while revenue held steady. Versus the same quarter last year, gross margin also improved, reflecting higher revenue and lower cost of revenue.
Monitor cost of revenue trends given the seasonal demand patterns and expected cash generation in the following quarter noted in the filing.