PPG Industries, Inc. stock research
FY2024 Q1
PPG Industries (PPG) Gross Margin — Quarter Ended Mar 31, 2024
For the quarter, revenue and gross profit were higher than the previous quarter but lower than the same quarter a year ago. Gross margin improved compared to both periods.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
For the quarter, revenue and gross profit were higher than the previous quarter but lower than the same quarter a year ago. Gross margin improved compared to both periods.
- The gross margin strengthened relative to both the prior quarter and the year-ago quarter, driven by a lower proportion of cost of revenue to revenue.
- Compared to the immediate prior quarter, revenue and gross profit increased, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit decreased, but gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.7%
Gross profit
$1.6B
Revenue
$3.8B
Cost of revenue
$2.2B
Quarter-over-quarter change
+5.1 pts
Year-over-year change
+1.5 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 | $4.9B | $2.0B | $2.9B | 41.2% |
| Sep 30, 2023 | $4.6B | $1.9B | $2.8B | 40.7% |
| Dec 31, 2023 | $2.3B | $882.0M | $1.5B | 37.6% |
| Mar 31, 2024 | $3.8B | $1.6B | $2.2B | 42.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+5.1 pts
Year-over-year change
Jun 30, 2023
+1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened relative to both the prior quarter and the year-ago quarter, driven by a lower proportion of cost of revenue to revenue.
Compared to the immediate prior quarter, revenue and gross profit increased, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit decreased, but gross margin was higher.
Monitor the trend in cost of revenue relative to revenue to assess margin sustainability.