TransDigm Group Incorporated stock research
FY2024 Q3
TransDigm Group (TDG) Gross Margin — Quarter Ended Jun 29, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter last year.
Gross margin takeaway
Quarter ended Jun 29, 2024 · FY2024 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter but improved compared to the same quarter last year.
- The relationship between revenue and cost of revenue shows that revenue grew faster than cost of revenue compared to the same quarter last year, supporting margin improvement. Compared to the prior quarter, cost of revenue grew at a slightly faster pace relative to revenue, leading to a marginal margin decline.
- Compared to the prior quarter, gross margin was slightly lower despite higher revenue and gross profit. Compared to the same quarter last year, gross margin was higher, with revenue and gross profit both increasing.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.6%
Gross profit
$1.2B
Revenue
$2.0B
Cost of revenue
$826.0M
Quarter-over-quarter change
-0.4 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 |
|---|---|---|---|---|
| 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% |
| Jun 29, 2024 | $2.0B | $1.2B | $826.0M | 59.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 30, 2024
-0.4 pts
Year-over-year change
Jul 1, 2023
+0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue shows that revenue grew faster than cost of revenue compared to the same quarter last year, supporting margin improvement. Compared to the prior quarter, cost of revenue grew at a slightly faster pace relative to revenue, leading to a marginal margin decline.
Compared to the prior quarter, gross margin was slightly lower despite higher revenue and gross profit. Compared to the same quarter last year, gross margin was higher, with revenue and gross profit both increasing.
Monitor the trend in cost of revenue relative to revenue, as its growth rate influenced the gross margin change between periods.