Sysco Corporation stock research
FY2024 Q2
Sysco (SYY) Gross Margin — Quarter Ended Dec 30, 2023
Revenue decreased compared to the prior quarter, while gross profit and cost of revenue also declined, resulting in a lower gross margin. Versus the same quarter last year, revenue and gross profit were higher, cost of revenue increased, and gross margin improved.
Gross margin takeaway
Quarter ended Dec 30, 2023 · FY2024 Q2
Revenue decreased compared to the prior quarter, while gross profit and cost of revenue also declined, resulting in a lower gross margin. Versus the same quarter last year, revenue and gross profit were higher, cost of revenue increased, and gross margin improved.
- The gross margin weakened sequentially as the decline in gross profit outpaced the reduction in revenue. On a year-over-year basis, the margin strengthened, supported by a proportionally larger increase in gross profit relative to revenue.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
18.2%
Gross profit
$3.5B
Revenue
$19.3B
Cost of revenue
$15.8B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
+0.2 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 |
|---|---|---|---|---|
| Apr 1, 2023 | $18.9B | $3.4B | $15.4B | 18.2% |
| Sep 30, 2023 | $19.6B | $3.6B | $16.0B | 18.6% |
| Dec 30, 2023 | $19.3B | $3.5B | $15.8B | 18.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-0.4 pts
Year-over-year change
Dec 31, 2022
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened sequentially as the decline in gross profit outpaced the reduction in revenue. On a year-over-year basis, the margin strengthened, supported by a proportionally larger increase in gross profit relative to revenue.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Monitor the trajectory of cost of revenue relative to revenue, as its sequential decline was proportionally smaller than the drop in revenue.