Pentair plc stock research
FY2024 Q1
Pentair (PNR) Gross Margin — Quarter Ended Mar 31, 2024
Revenue was similar to the same quarter last year and higher than the prior quarter. Gross profit increased and gross margin improved as cost of revenue decreased year-over-year and rose less than revenue sequentially.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue was similar to the same quarter last year and higher than the prior quarter. Gross profit increased and gross margin improved as cost of revenue decreased year-over-year and rose less than revenue sequentially.
- The improvement in gross margin was driven by a lower cost of revenue relative to revenue compared to both the prior quarter and the year-ago quarter.
- Compared to the immediately preceding quarter, revenue was higher, cost of revenue was higher, but gross profit was higher and gross margin improved. Compared to the same quarter one year earlier, revenue was similar, cost of revenue was lower, gross profit was higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.4%
Gross profit
$390.1M
Revenue
$1.0B
Cost of revenue
$627.1M
Quarter-over-quarter change
+1.2 pts
Year-over-year change
+1.2 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 | $1.1B | $399.5M | $683.0M | 36.9% |
| Sep 30, 2023 | $1.0B | $371.8M | $637.0M | 36.9% |
| Dec 31, 2023 | $984.6M | $366.1M | $618.5M | 37.2% |
| Mar 31, 2024 | $1.0B | $390.1M | $627.1M | 38.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+1.2 pts
Year-over-year change
Mar 31, 2023
+1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was driven by a lower cost of revenue relative to revenue compared to both the prior quarter and the year-ago quarter.
Compared to the immediately preceding quarter, revenue was higher, cost of revenue was higher, but gross profit was higher and gross margin improved. Compared to the same quarter one year earlier, revenue was similar, cost of revenue was lower, gross profit was higher, and gross margin improved.
Monitor the trend in cost of revenue relative to revenue, as the filing notes seasonal demand patterns that may affect future margins.