TELEDYNE TECHNOLOGIES INC stock research
FY2023 Q1
TELEDYNE TECHNOLOGIES (TDY) Gross Margin — Quarter Ended Apr 2, 2023
The gross margin for the current period weakened compared to both the immediately preceding period and the same period one year earlier. Revenue was stable relative to the prior period but higher than a year ago, while gross profit decreased sequentially but increased year-over-year; cost of revenue followed a similar pattern, declining from the prior quarter but rising from the year-ago quarter.
Gross margin takeaway
Quarter ended Apr 2, 2023 · FY2023 Q1
The gross margin for the current period weakened compared to both the immediately preceding period and the same period one year earlier. Revenue was stable relative to the prior period but higher than a year ago, while gross profit decreased sequentially but increased year-over-year; cost of revenue followed a similar pattern, declining from the prior quarter but rising from the year-ago quarter.
- The sequential decline in gross margin was driven by a decrease in gross profit while revenue remained unchanged, indicating that the cost of revenue did not fall sufficiently to offset the gross profit reduction. On a year-over-year basis, the margin weakened because gross profit increased at a slower pace than revenue.
- Sequentially, gross margin weakened as gross profit fell while revenue was stable. Compared to the same period one year earlier, gross margin also softened, with revenue rising but gross profit improving only modestly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
42.8%
Gross profit
$592.6M
Revenue
$1.4B
Cost of revenue
$790.7M
Quarter-over-quarter change
-0.7 pts
Year-over-year change
-0.2 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 |
|---|---|---|---|---|
| Jan 1, 2023 | $1.4B | $616.9M | $801.3M | 43.5% |
| Apr 2, 2023 | $1.4B | $592.6M | $790.7M | 42.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 1, 2023
-0.7 pts
Year-over-year change
Apr 3, 2022
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential decline in gross margin was driven by a decrease in gross profit while revenue remained unchanged, indicating that the cost of revenue did not fall sufficiently to offset the gross profit reduction. On a year-over-year basis, the margin weakened because gross profit increased at a slower pace than revenue.
Sequentially, gross margin weakened as gross profit fell while revenue was stable. Compared to the same period one year earlier, gross margin also softened, with revenue rising but gross profit improving only modestly.
Monitor the relationship between cost of revenue and revenue, as the gross margin declined despite a lower cost of revenue sequentially, suggesting a potential shift in cost structure.