TransDigm Group Incorporated stock research
FY2023 Q2
TransDigm Group (TDG) Gross Margin — Quarter Ended Apr 1, 2023
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin improved versus both periods, indicating that gross profit grew faster than cost of revenue.
Gross margin takeaway
Quarter ended Apr 1, 2023 · FY2023 Q2
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter last year. Gross margin improved versus both periods, indicating that gross profit grew faster than cost of revenue.
- The strongest observable margin driver is the improvement in gross margin relative to both the prior quarter and the year-ago quarter, as gross profit expanded more rapidly than cost of revenue.
- 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, all metrics were higher and gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
58.4%
Gross profit
$929.0M
Revenue
$1.6B
Cost of revenue
$663.0M
Quarter-over-quarter change
n/a
Year-over-year change
+2.9 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 | $1.6B | $929.0M | $663.0M | 58.4% |
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
Apr 2, 2022
+2.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the improvement in gross margin relative to both the prior quarter and the year-ago quarter, as gross profit expanded more rapidly than cost of revenue.
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, all metrics were higher and gross margin also improved.
Monitor the trend in cost of revenue relative to revenue, as its growth rate influences gross margin sustainability.