STERIS plc stock research
FY2024 Q1
STERIS (STE) Gross Margin — Quarter Ended Jun 30, 2023
Revenue decreased compared to the immediately preceding quarter but increased compared to the same quarter one year earlier. Gross profit followed a similar pattern, while cost of revenue declined from the prior quarter and rose from the year-ago period, resulting in a gross margin that improved from the prior quarter but weakened from the same quarter last year.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2024 Q1
Revenue decreased compared to the immediately preceding quarter but increased compared to the same quarter one year earlier. Gross profit followed a similar pattern, while cost of revenue declined from the prior quarter and rose from the year-ago period, resulting in a gross margin that improved from the prior quarter but weakened from the same quarter last year.
- The gross margin improved from the prior quarter, driven by a proportionally larger decline in cost of revenue relative to the decrease in revenue. Compared to the year-ago quarter, the gross margin weakened as cost of revenue increased at a faster rate than revenue.
- Compared to the immediately preceding quarter, revenue was lower and cost of revenue was lower, with gross profit slightly lower and gross margin higher. Compared to the same quarter one year earlier, revenue was higher and cost of revenue was higher, with gross profit higher and gross margin lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.7%
Gross profit
$529.0M
Revenue
$1.2B
Cost of revenue
$654.4M
Quarter-over-quarter change
n/a
Year-over-year change
-0.4 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $1.2B | $529.0M | $654.4M | 44.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Jun 30, 2022
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved from the prior quarter, driven by a proportionally larger decline in cost of revenue relative to the decrease in revenue. Compared to the year-ago quarter, the gross margin weakened as cost of revenue increased at a faster rate than revenue.
Compared to the immediately preceding quarter, revenue was lower and cost of revenue was lower, with gross profit slightly lower and gross margin higher. Compared to the same quarter one year earlier, revenue was higher and cost of revenue was higher, with gross profit higher and gross margin lower.
Monitor the trajectory of cost of revenue relative to revenue, as its growth rate outpaced revenue growth year-over-year, pressuring gross margin.