TransDigm Group Incorporated stock research
FY2024 Q1
TransDigm Group (TDG) Gross Margin — Quarter Ended Dec 30, 2023
Revenue decreased from the prior quarter while cost of revenue also declined, resulting in a lower gross profit and a slightly weakened gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin all improved, with cost of revenue rising less proportionally.
Gross margin takeaway
Quarter ended Dec 30, 2023 · FY2024 Q1
Revenue decreased from the prior quarter while cost of revenue also declined, resulting in a lower gross profit and a slightly weakened gross margin. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin all improved, with cost of revenue rising less proportionally.
- The gross margin weakened sequentially as the decline in gross profit outpaced the reduction in revenue. The year-over-year improvement in gross margin was supported by a larger increase in gross profit relative to revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened slightly. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
58.2%
Gross profit
$1.0B
Revenue
$1.8B
Cost of revenue
$747.0M
Quarter-over-quarter change
-0.7 pts
Year-over-year change
+1.5 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% |
| Sep 30, 2023 | $1.9B | $1.1B | $760.0M | 59.0% |
| Dec 30, 2023 | $1.8B | $1.0B | $747.0M | 58.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-0.7 pts
Year-over-year change
Dec 31, 2022
+1.5 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. The year-over-year improvement in gross margin was supported by a larger increase in gross profit relative to revenue.
Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened slightly. Compared to the same quarter one year earlier, revenue, gross profit, and gross margin were all higher.
Monitor the trend in cost of revenue relative to revenue, as its decline was less than the revenue drop sequentially.