TE Connectivity plc stock research
FY2024 Q4
TE Connectivity (TEL) Gross Margin — Quarter Ended Sep 27, 2024
Revenue increased compared to both the prior quarter and the same quarter one year earlier, while gross profit remained stable sequentially but was higher year over year. Cost of revenue rose sequentially and fell year over year, resulting in gross margin that weakened from the preceding quarter but improved compared to the same quarter last year.
Gross margin takeaway
Quarter ended Sep 27, 2024 · FY2024 Q4
Revenue increased compared to both the prior quarter and the same quarter one year earlier, while gross profit remained stable sequentially but was higher year over year. Cost of revenue rose sequentially and fell year over year, resulting in gross margin that weakened from the preceding quarter but improved compared to the same quarter last year.
- The strongest observable margin driver is the change in cost of revenue relative to revenue: sequentially, cost of revenue increased while revenue grew modestly, compressing margin; year over year, cost of revenue declined while revenue rose, expanding margin.
- Gross margin weakened sequentially, from the prior quarter's level, but improved year over year compared to the same quarter a year ago. Revenue, gross profit, and cost of revenue all moved in directions that produced this mixed outcome.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.0%
Gross profit
$1.4B
Revenue
$4.1B
Cost of revenue
$2.7B
Quarter-over-quarter change
-0.8 pts
Year-over-year change
+2.2 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 |
|---|---|---|---|---|
| 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% |
| Sep 27, 2024 | $4.1B | $1.4B | $2.7B | 34.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 28, 2024
-0.8 pts
Year-over-year change
Sep 29, 2023
+2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in cost of revenue relative to revenue: sequentially, cost of revenue increased while revenue grew modestly, compressing margin; year over year, cost of revenue declined while revenue rose, expanding margin.
Gross margin weakened sequentially, from the prior quarter's level, but improved year over year compared to the same quarter a year ago. Revenue, gross profit, and cost of revenue all moved in directions that produced this mixed outcome.
Monitor the new segment structure effective for fiscal 2025 and the impact of foreign currency exchange rates on future margins, as noted in the company's outlook.