Constellation Brands, Inc. stock research
FY2024 Q2
Constellation Brands (STZ) Gross Margin — Quarter Ended Aug 31, 2023
Revenue, gross profit, and cost of revenue all increased compared to both the preceding quarter and the same quarter last year. Gross margin improved over both periods, reflecting a larger increase in gross profit relative to the increase in cost of revenue.
Gross margin takeaway
Quarter ended Aug 31, 2023 · FY2024 Q2
Revenue, gross profit, and cost of revenue all increased compared to both the preceding quarter and the same quarter last year. Gross margin improved over both periods, reflecting a larger increase in gross profit relative to the increase in cost of revenue.
- The increase in revenue outpaced the increase in cost of revenue, which was associated with an improved gross margin.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.1%
Gross profit
$1.4B
Revenue
$2.8B
Cost of revenue
$1.4B
Quarter-over-quarter change
+1.1 pts
Year-over-year change
+1.2 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 |
|---|---|---|---|---|
| May 31, 2023 | $2.5B | $1.3B | $1.3B | 50.0% |
| Aug 31, 2023 | $2.8B | $1.4B | $1.4B | 51.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 31, 2023
+1.1 pts
Year-over-year change
Aug 31, 2022
+1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The increase in revenue outpaced the increase in cost of revenue, which was associated with an improved gross margin.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were higher, and gross margin improved. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was higher, and gross margin improved.
Monitor the trend in cost of revenue relative to revenue to assess whether gross margin can be sustained.