PPG Industries, Inc. stock research
FY2023 Q3
PPG Industries (PPG) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and gross profit decreased from the prior quarter but increased compared to the same quarter last year. Cost of revenue declined sequentially and was stable year over year, resulting in a gross margin that weakened from the prior quarter but improved from a year ago.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and gross profit decreased from the prior quarter but increased compared to the same quarter last year. Cost of revenue declined sequentially and was stable year over year, resulting in a gross margin that weakened from the prior quarter but improved from a year ago.
- The sequential decline in gross margin was associated with a smaller reduction in cost of revenue relative to the reduction in revenue. The year-over-year improvement reflected a stable cost of revenue alongside higher revenue.
- Compared to the prior quarter, revenue and gross profit were lower while cost of revenue was also lower, but gross margin weakened. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.7%
Gross profit
$1.9B
Revenue
$4.6B
Cost of revenue
$2.8B
Quarter-over-quarter change
-0.4 pts
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 | $4.4B | $1.8B | $2.6B | 40.7% |
| Jun 30, 2023 | $4.9B | $2.0B | $2.9B | 41.2% |
| Sep 30, 2023 | $4.6B | $1.9B | $2.8B | 40.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.4 pts
Year-over-year change
Sep 30, 2022
+3.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential decline in gross margin was associated with a smaller reduction in cost of revenue relative to the reduction in revenue. The year-over-year improvement reflected a stable cost of revenue alongside higher revenue.
Compared to the prior quarter, revenue and gross profit were lower while cost of revenue was also lower, but gross margin weakened. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was stable, and gross margin improved.
Monitor the trend of cost of revenue relative to revenue, as its movement has been a key factor in gross margin changes.