TD

TELEDYNE TECHNOLOGIES INC stock research

Dec 29, 2024

FY2024 Q4

TELEDYNE TECHNOLOGIES (TDY) Gross Margin — Quarter Ended Dec 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 and more notably from the year-ago quarter.

Gross margin takeaway

Quarter ended Dec 29, 2024 · FY2024 Q4

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 and more notably from the year-ago quarter.

  • The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased while cost of revenue grew at a faster pace, compressing gross margin.
  • Compared to the immediately preceding quarter, gross margin was slightly lower despite higher revenue and gross profit. Compared to the same quarter one year earlier, gross margin was lower, with revenue and gross profit higher but cost of revenue increasing more sharply.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

42.8%

Gross profit

$642.7M

Revenue

$1.5B

Cost of revenue

$859.6M

Quarter-over-quarter change

-0.1 pts

Year-over-year change

-0.9 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2024$1.4B$579.9M$770.2M43.0%
Jun 30, 2024$1.4B$592.6M$781.5M43.1%
Sep 29, 2024$1.4B$619.6M$823.9M42.9%
Dec 29, 2024$1.5B$642.7M$859.6M42.8%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 29, 2024

-0.1 pts

Year-over-year change

Dec 31, 2023

-0.9 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased while cost of revenue grew at a faster pace, compressing gross margin.

Compared to the immediately preceding quarter, gross margin was slightly lower despite higher revenue and gross profit. Compared to the same quarter one year earlier, gross margin was lower, with revenue and gross profit higher but cost of revenue increasing more sharply.

Monitor the trend in cost of revenue relative to revenue, as its faster growth is the primary factor behind the margin decline.

TDY Gross Margin — Quarter Ended Dec 29, 2024