Rockwell Automation, Inc. stock research
FY2024 Q2
Rockwell Automation (ROK) Gross Margin — Quarter Ended Mar 31, 2024
Revenue was unchanged from the prior quarter, while gross profit improved and cost of revenue remained stable, leading to a higher gross margin. Compared to the same quarter last year, revenue and gross profit were lower, cost of revenue was similar, and gross margin weakened.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q2
Revenue was unchanged from the prior quarter, while gross profit improved and cost of revenue remained stable, leading to a higher gross margin. Compared to the same quarter last year, revenue and gross profit were lower, cost of revenue was similar, and gross margin weakened.
- Gross profit increased sequentially while revenue held steady, indicating that the improvement in gross margin was driven by a more favorable relationship between revenue and cost of revenue.
- Compared to the prior quarter, gross margin improved as gross profit rose with stable revenue and cost of revenue. Versus the same quarter last year, gross margin weakened as gross profit declined more sharply than revenue, while cost of revenue was little changed.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.2%
Gross profit
$833.0M
Revenue
$2.1B
Cost of revenue
$1.3B
Quarter-over-quarter change
+0.4 pts
Year-over-year change
-1.8 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 | $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% |
| Mar 31, 2024 | $2.1B | $833.0M | $1.3B | 39.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+0.4 pts
Year-over-year change
Mar 31, 2023
-1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit increased sequentially while revenue held steady, indicating that the improvement in gross margin was driven by a more favorable relationship between revenue and cost of revenue.
Compared to the prior quarter, gross margin improved as gross profit rose with stable revenue and cost of revenue. Versus the same quarter last year, gross margin weakened as gross profit declined more sharply than revenue, while cost of revenue was little changed.
Monitor the trajectory of gross profit relative to revenue in upcoming quarters to assess whether the sequential improvement in gross margin can be sustained.