Rockwell Automation, Inc. stock research
FY2024 Q1
Rockwell Automation (ROK) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both decreased compared to the immediately preceding quarter, while cost of revenue increased, resulting in a lower gross margin. Compared to the same quarter one year earlier, revenue was slightly higher but gross profit and gross margin were lower, with cost of revenue also higher.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2024 Q1
Revenue and gross profit both decreased compared to the immediately preceding quarter, while cost of revenue increased, resulting in a lower gross margin. Compared to the same quarter one year earlier, revenue was slightly higher but gross profit and gross margin were lower, with cost of revenue also higher.
- The most observable margin driver is the relationship between cost of revenue and revenue; cost of revenue increased while revenue declined sequentially, which directly weakened gross margin.
- Compared to the immediately preceding quarter, gross margin weakened significantly as revenue fell and cost of revenue rose. Compared to the same quarter one year earlier, gross margin also weakened, with revenue slightly higher but gross profit lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.7%
Gross profit
$795.0M
Revenue
$2.1B
Cost of revenue
$1.3B
Quarter-over-quarter change
-30.0 pts
Year-over-year change
-2.3 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 | $2.3B | $932.5M | $1.3B | 41.0% |
| Jun 30, 2023 | $2.2B | $915.4M | $1.3B | 40.9% |
| Sep 30, 2023 | $2.6B | $1.8B | $801.4M | 68.7% |
| Dec 31, 2023 | $2.1B | $795.0M | $1.3B | 38.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-30.0 pts
Year-over-year change
Dec 31, 2022
-2.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the relationship between cost of revenue and revenue; cost of revenue increased while revenue declined sequentially, which directly weakened gross margin.
Compared to the immediately preceding quarter, gross margin weakened significantly as revenue fell and cost of revenue rose. Compared to the same quarter one year earlier, gross margin also weakened, with revenue slightly higher but gross profit lower.
Monitor the trajectory of cost of revenue relative to revenue, as its increase alongside declining revenue was the primary factor in margin compression.