Steel Dynamics, Inc. stock research
FY2024 Q1
Steel Dynamics (STLD) Gross Margin — Quarter Ended Mar 31, 2024
Revenue increased compared to the prior quarter, while gross profit rose and cost of revenue was higher, resulting in an improved gross margin. Versus the same quarter last year, revenue was lower, gross profit decreased, cost of revenue declined, and gross margin weakened.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue increased compared to the prior quarter, while gross profit rose and cost of revenue was higher, resulting in an improved gross margin. Versus the same quarter last year, revenue was lower, gross profit decreased, cost of revenue declined, and gross margin weakened.
- The strongest observable margin driver is the relationship between revenue and cost of revenue; gross margin improved sequentially as revenue grew faster than cost of revenue. Compared to the prior year, gross margin declined because cost of revenue fell less proportionally than revenue.
- Compared to the immediately preceding quarter, gross margin was higher, driven by a larger increase in revenue relative to cost of revenue. Compared to the same quarter one year earlier, gross margin was lower, as revenue declined while cost of revenue decreased at a slower pace.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.9%
Gross profit
$980.8M
Revenue
$4.7B
Cost of revenue
$3.7B
Quarter-over-quarter change
+3.6 pts
Year-over-year change
-0.7 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 | $5.1B | $1.3B | $3.8B | 25.7% |
| Sep 30, 2023 | $4.6B | $952.0M | $3.6B | 20.8% |
| Dec 31, 2023 | $4.2B | $730.9M | $3.5B | 17.3% |
| Mar 31, 2024 | $4.7B | $980.8M | $3.7B | 20.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+3.6 pts
Year-over-year change
Mar 31, 2023
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue; gross margin improved sequentially as revenue grew faster than cost of revenue. Compared to the prior year, gross margin declined because cost of revenue fell less proportionally than revenue.
Compared to the immediately preceding quarter, gross margin was higher, driven by a larger increase in revenue relative to cost of revenue. Compared to the same quarter one year earlier, gross margin was lower, as revenue declined while cost of revenue decreased at a slower pace.
Monitor the trend in cost of revenue relative to revenue, as its slower decline year-over-year contributed to the gross margin weakening.