TE Connectivity plc stock research
FY2024 Q3
TE Connectivity (TEL) Gross Margin — Quarter Ended Jun 28, 2024
Revenue remained similar compared with both the previous quarter and the same quarter last year. Gross profit improved, supported by a lower cost of revenue, which led to a higher gross margin.
Gross margin takeaway
Quarter ended Jun 28, 2024 · FY2024 Q3
Revenue remained similar compared with both the previous quarter and the same quarter last year. Gross profit improved, supported by a lower cost of revenue, which led to a higher gross margin.
- The reduction in cost of revenue was the primary factor behind the gross margin improvement, as revenue was relatively stable across all comparison periods.
- Gross margin strengthened moderately versus the immediately preceding quarter and improved more notably compared with the same quarter one year earlier. Revenue was essentially flat in both comparisons, while cost of revenue declined year-over-year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.8%
Gross profit
$1.4B
Revenue
$4.0B
Cost of revenue
$2.6B
Quarter-over-quarter change
+0.5 pts
Year-over-year change
+2.3 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 |
|---|---|---|---|---|
| Sep 29, 2023 | $4.0B | $1.3B | $2.8B | 31.8% |
| Dec 29, 2023 | $3.8B | $1.3B | $2.5B | 34.6% |
| Mar 29, 2024 | $4.0B | $1.4B | $2.6B | 34.4% |
| Jun 28, 2024 | $4.0B | $1.4B | $2.6B | 34.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 29, 2024
+0.5 pts
Year-over-year change
Jun 30, 2023
+2.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The reduction in cost of revenue was the primary factor behind the gross margin improvement, as revenue was relatively stable across all comparison periods.
Gross margin strengthened moderately versus the immediately preceding quarter and improved more notably compared with the same quarter one year earlier. Revenue was essentially flat in both comparisons, while cost of revenue declined year-over-year.
Monitor whether the lower cost of revenue level can be sustained in upcoming periods.