Pentair plc stock research
FY2024 Q3
Pentair (PNR) Gross Margin — Quarter Ended Sep 30, 2024
Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit was lower than the prior quarter but higher than a year ago. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter last year, as cost of revenue declined more than revenue on a year-over-year basis.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit was lower than the prior quarter but higher than a year ago. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter last year, as cost of revenue declined more than revenue on a year-over-year basis.
- The most notable change is the year-over-year improvement in gross margin, which resulted from a proportionally larger decrease in cost of revenue relative to the decline in revenue.
- Compared to the prior quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened slightly. Compared to the same quarter last year, revenue was slightly lower, 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
39.6%
Gross profit
$393.2M
Revenue
$993.4M
Cost of revenue
$600.2M
Quarter-over-quarter change
-0.3 pts
Year-over-year change
+2.7 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $993.4M | $393.2M | $600.2M | 39.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-0.3 pts
Year-over-year change
Sep 30, 2023
+2.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable change is the year-over-year improvement in gross margin, which resulted from a proportionally larger decrease in cost of revenue relative to the decline in revenue.
Compared to the prior quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened slightly. Compared to the same quarter last year, revenue was slightly lower, gross profit was higher, cost of revenue was lower, and gross margin improved.
Monitor the impact of seasonal demand patterns on revenue and cost of revenue as referenced in the filing.