Teradyne, Inc. stock research
FY2023 Q1
Teradyne (TER) Gross Margin — Quarter Ended Apr 2, 2023
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin improved slightly from the prior quarter but weakened compared to the same quarter last year.
Gross margin takeaway
Quarter ended Apr 2, 2023 · FY2023 Q1
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin improved slightly from the prior quarter but weakened compared to the same quarter last year.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue declined more sharply than cost of revenue compared to the prior quarter, leading to a slight gross margin improvement. Compared to the same quarter last year, cost of revenue fell less than revenue, resulting in a weaker gross margin.
- Compared to the prior quarter, revenue and gross profit were lower, but gross margin was slightly higher. Compared to the same quarter last year, revenue, gross profit, and gross margin were all lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
57.7%
Gross profit
$356.4M
Revenue
$617.5M
Cost of revenue
$261.1M
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 |
|---|---|---|---|---|
| Apr 2, 2023 | $617.5M | $356.4M | $261.1M | 57.7% |
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
Apr 3, 2022
-2.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue declined more sharply than cost of revenue compared to the prior quarter, leading to a slight gross margin improvement. Compared to the same quarter last year, cost of revenue fell less than revenue, resulting in a weaker gross margin.
Compared to the prior quarter, revenue and gross profit were lower, but gross margin was slightly higher. Compared to the same quarter last year, revenue, gross profit, and gross margin were all lower.
Monitor the trend in cost of revenue relative to revenue, as its proportion has shifted compared to both the prior quarter and the year-ago quarter.