Pentair plc stock research
FY2024 Q2
Pentair (PNR) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose sequentially but declined year over year. Gross margin improved to a higher level than both comparison periods, reflecting a favorable relationship between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose sequentially but declined year over year. Gross margin improved to a higher level than both comparison periods, reflecting a favorable relationship between revenue and cost of revenue.
- The gross margin improvement was primarily associated with cost of revenue increasing at a slower rate than revenue sequentially and decreasing year over year while revenue remained relatively stable.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was slightly higher, gross profit was higher, cost of revenue was lower, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.8%
Gross profit
$437.9M
Revenue
$1.1B
Cost of revenue
$661.4M
Quarter-over-quarter change
+1.5 pts
Year-over-year change
+2.9 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $1.1B | $437.9M | $661.4M | 39.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+1.5 pts
Year-over-year change
Jun 30, 2023
+2.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was primarily associated with cost of revenue increasing at a slower rate than revenue sequentially and decreasing year over year while revenue remained relatively stable.
Compared to the immediately preceding quarter, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was slightly higher, gross profit was higher, cost of revenue was lower, and gross margin improved.
Monitor the impact of seasonal demand patterns and end-user demand for pool equipment and water solution products, as noted in the filing, on future revenue and cost trends.