TransDigm Group Incorporated stock research
FY2024 Q2
TransDigm Group (TDG) Gross Margin — Quarter Ended Mar 30, 2024
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter one year earlier. Gross margin improved versus both periods as gross profit grew at a faster rate than cost of revenue.
Gross margin takeaway
Quarter ended Mar 30, 2024 · FY2024 Q2
Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter one year earlier. Gross margin improved versus both periods as gross profit grew at a faster rate than cost of revenue.
- The strongest observable driver is the gross margin rate, which reached a level higher than both the prior quarter and the year-ago quarter, indicating a favorable relationship between revenue and cost of revenue.
- Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.0%
Gross profit
$1.2B
Revenue
$1.9B
Cost of revenue
$767.0M
Quarter-over-quarter change
+1.8 pts
Year-over-year change
+1.7 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 |
|---|---|---|---|---|
| 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% |
| Mar 30, 2024 | $1.9B | $1.2B | $767.0M | 60.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 30, 2023
+1.8 pts
Year-over-year change
Apr 1, 2023
+1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the gross margin rate, which reached a level higher than both the prior quarter and the year-ago quarter, indicating a favorable relationship between revenue and cost of revenue.
Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin also improved.
Monitor the trajectory of cost of revenue relative to revenue in subsequent quarters to see if the margin improvement is sustained.