TE Connectivity plc stock research
FY2024 Q1
TE Connectivity (TEL) Gross Margin — Quarter Ended Dec 29, 2023
Revenue declined from the prior quarter but was stable compared to the same quarter last year. Gross profit increased year-over-year, while cost of revenue decreased, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Dec 29, 2023 · FY2024 Q1
Revenue declined from the prior quarter but was stable compared to the same quarter last year. Gross profit increased year-over-year, while cost of revenue decreased, resulting in an improved gross margin.
- The primary factor in the margin improvement was the reduction in cost of revenue relative to revenue, as gross profit remained steady while revenue declined from the prior quarter.
- Compared to the immediately preceding quarter, gross margin improved as cost of revenue fell more sharply than revenue. Versus the same quarter a year earlier, gross margin also improved, supported by higher gross profit and lower cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.6%
Gross profit
$1.3B
Revenue
$3.8B
Cost of revenue
$2.5B
Quarter-over-quarter change
+2.7 pts
Year-over-year change
+3.7 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% |
| Sep 29, 2023 | $4.0B | $1.3B | $2.8B | 31.8% |
| Dec 29, 2023 | $3.8B | $1.3B | $2.5B | 34.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 29, 2023
+2.7 pts
Year-over-year change
Dec 30, 2022
+3.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary factor in the margin improvement was the reduction in cost of revenue relative to revenue, as gross profit remained steady while revenue declined from the prior quarter.
Compared to the immediately preceding quarter, gross margin improved as cost of revenue fell more sharply than revenue. Versus the same quarter a year earlier, gross margin also improved, supported by higher gross profit and lower cost of revenue.
Monitor the company's outlook for net sales growth in the upcoming quarter, as noted in the filing, and its potential implications for margin trends.