TE Connectivity plc stock research
FY2023 Q2
TE Connectivity (TEL) Gross Margin — Quarter Ended Mar 31, 2023
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was higher than the prior quarter but flat year-over-year. Cost of revenue grew at a faster pace than revenue year-over-year, causing gross margin to be lower than the same quarter last year, while it remained stable from the prior quarter.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q2
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was higher than the prior quarter but flat year-over-year. Cost of revenue grew at a faster pace than revenue year-over-year, causing gross margin to be lower than the same quarter last year, while it remained stable from the prior quarter.
- The strongest observable driver is the change in cost of revenue relative to revenue. Year-over-year, cost of revenue increased more than revenue, leading to a lower gross margin.
- Compared to the prior quarter, revenue and gross profit both increased, and gross margin was unchanged. Compared to the same quarter one year earlier, revenue was higher, gross profit was flat, and gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
30.9%
Gross profit
$1.3B
Revenue
$4.2B
Cost of revenue
$2.9B
Quarter-over-quarter change
n/a
Year-over-year change
-2.5 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $4.2B | $1.3B | $2.9B | 30.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 25, 2022
-2.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the change in cost of revenue relative to revenue. Year-over-year, cost of revenue increased more than revenue, leading to a lower gross margin.
Compared to the prior quarter, revenue and gross profit both increased, and gross margin was unchanged. Compared to the same quarter one year earlier, revenue was higher, gross profit was flat, and gross margin was lower.
Monitor management's assessment of the ongoing military conflict and pandemic, as noted in the filing, which may influence future cost of revenue.