Rockwell Automation, Inc. stock research
FY2024 Q4
Rockwell Automation (ROK) Gross Margin — Quarter Ended Sep 30, 2024
Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit increased sharply from the prior quarter but declined from a year ago. Cost of revenue fell significantly from the prior quarter and was lower than the year-ago quarter, resulting in a gross margin that improved markedly from the prior quarter and was slightly higher than the year-ago quarter.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q4
Revenue decreased compared to both the prior quarter and the same quarter last year, while gross profit increased sharply from the prior quarter but declined from a year ago. Cost of revenue fell significantly from the prior quarter and was lower than the year-ago quarter, resulting in a gross margin that improved markedly from the prior quarter and was slightly higher than the year-ago quarter.
- The strongest observable margin driver is the substantial reduction in cost of revenue relative to revenue, which lifted gross margin well above the prior quarter's level. This relationship between lower cost of revenue and higher gross profit is the primary factor behind the margin improvement.
- Compared to the immediately preceding quarter, gross margin improved significantly as cost of revenue dropped while gross profit rose, despite lower revenue. Versus the same quarter one year earlier, gross margin was slightly higher, supported by a larger decline in cost of revenue relative to the decline in revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.2%
Gross profit
$1.4B
Revenue
$2.0B
Cost of revenue
$607.0M
Quarter-over-quarter change
+31.4 pts
Year-over-year change
+1.4 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 | $2.1B | $795.0M | $1.3B | 38.7% |
| Mar 31, 2024 | $2.1B | $833.0M | $1.3B | 39.2% |
| Jun 30, 2024 | $2.1B | $795.0M | $1.3B | 38.8% |
| Sep 30, 2024 | $2.0B | $1.4B | $607.0M | 70.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+31.4 pts
Year-over-year change
Sep 30, 2023
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the substantial reduction in cost of revenue relative to revenue, which lifted gross margin well above the prior quarter's level. This relationship between lower cost of revenue and higher gross profit is the primary factor behind the margin improvement.
Compared to the immediately preceding quarter, gross margin improved significantly as cost of revenue dropped while gross profit rose, despite lower revenue. Versus the same quarter one year earlier, gross margin was slightly higher, supported by a larger decline in cost of revenue relative to the decline in revenue.
Monitor the trajectory of cost of revenue relative to revenue, as its decline was the primary factor behind the current quarter's margin expansion.