TransDigm Group Incorporated stock research
FY2023 Q3
TransDigm Group (TDG) Gross Margin — Quarter Ended Jul 1, 2023
Revenue, gross profit, and cost of revenue all increased, while gross margin improved. The gross margin was higher than both the immediately preceding quarter and the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jul 1, 2023 · FY2023 Q3
Revenue, gross profit, and cost of revenue all increased, while gross margin improved. The gross margin was higher than both the immediately preceding quarter and the same quarter one year earlier.
- The improvement in gross margin is the most observable driver, reflecting a relationship where revenue grew more than cost of revenue relative to the prior periods.
- Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year ago, revenue and gross profit were also higher, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.0%
Gross profit
$1.0B
Revenue
$1.7B
Cost of revenue
$715.0M
Quarter-over-quarter change
+0.6 pts
Year-over-year change
+0.6 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% |
| Jul 1, 2023 | $1.7B | $1.0B | $715.0M | 59.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 1, 2023
+0.6 pts
Year-over-year change
Jul 2, 2022
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin is the most observable driver, reflecting a relationship where revenue grew more than cost of revenue relative to the prior periods.
Compared to the prior quarter, revenue and gross profit were higher, and gross margin improved. Compared to the same quarter one year ago, revenue and gross profit were also higher, and gross margin was higher.
Monitor the trajectory of gross margin in upcoming quarters to assess whether the improvement is sustained.