TE Connectivity plc stock research
FY2023 Q3
TE Connectivity (TEL) Gross Margin — Quarter Ended Jun 30, 2023
Revenue decreased from the prior quarter and was slightly below the year-ago level, while gross profit remained unchanged. The gross margin improved because cost of revenue fell more than revenue.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q3
Revenue decreased from the prior quarter and was slightly below the year-ago level, while gross profit remained unchanged. The gross margin improved because cost of revenue fell more than revenue.
- The strongest observable driver of the margin improvement was the reduction in cost of revenue, which declined more than the decline in revenue.
- Compared to the immediately preceding quarter, revenue was lower, cost of revenue was lower, gross profit was flat, and gross margin was higher. Compared to the same quarter one year earlier, revenue was slightly lower, cost of revenue was slightly lower, gross profit was unchanged, and gross margin was marginally higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.5%
Gross profit
$1.3B
Revenue
$4.0B
Cost of revenue
$2.7B
Quarter-over-quarter change
+1.6 pts
Year-over-year change
+0.1 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% |
| Jun 30, 2023 | $4.0B | $1.3B | $2.7B | 32.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.6 pts
Year-over-year change
Jun 24, 2022
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the margin improvement was the reduction in cost of revenue, which declined more than the decline in revenue.
Compared to the immediately preceding quarter, revenue was lower, cost of revenue was lower, gross profit was flat, and gross margin was higher. Compared to the same quarter one year earlier, revenue was slightly lower, cost of revenue was slightly lower, gross profit was unchanged, and gross margin was marginally higher.
Monitor cost of revenue trends and the potential impact of supply chain disruptions noted in the filing as a result of geopolitical and pandemic-related factors.