Teradyne, Inc. stock research
FY2023 Q2
Teradyne (TER) Gross Margin — Quarter Ended Jul 2, 2023
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose at a slower pace, leading to an improvement in gross margin. Compared to the same quarter last year, revenue and gross profit were lower, and gross margin weakened.
Gross margin takeaway
Quarter ended Jul 2, 2023 · FY2023 Q2
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue rose at a slower pace, leading to an improvement in gross margin. Compared to the same quarter last year, revenue and gross profit were lower, and gross margin weakened.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased more than cost of revenue compared to the prior quarter, which supported margin expansion.
- Compared to the immediately preceding quarter, gross margin improved as revenue grew faster than cost of revenue. Compared to the same quarter one year earlier, gross margin weakened as revenue declined more sharply than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
58.8%
Gross profit
$402.5M
Revenue
$684.4M
Cost of revenue
$281.9M
Quarter-over-quarter change
+1.1 pts
Year-over-year change
-1.4 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% |
| Jul 2, 2023 | $684.4M | $402.5M | $281.9M | 58.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 2, 2023
+1.1 pts
Year-over-year change
Jul 3, 2022
-1.4 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 growth and cost of revenue growth; revenue increased more than cost of revenue compared to the prior quarter, which supported margin expansion.
Compared to the immediately preceding quarter, gross margin improved as revenue grew faster than cost of revenue. Compared to the same quarter one year earlier, gross margin weakened as revenue declined more sharply than cost of revenue.
Monitor the trend in prepayments to contract manufacturers, which increased in the first half of the fiscal year and may signal changes in production commitments.