Teradyne, Inc. stock research
FY2023 Q4
Teradyne (TER) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit decreased compared to both the prior quarter and the same quarter last year. Gross margin remained stable sequentially but weakened year over year.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit decreased compared to both the prior quarter and the same quarter last year. Gross margin remained stable sequentially but weakened year over year.
- The gross margin was unchanged from the preceding quarter as cost of revenue declined in proportion to revenue. However, compared to the prior year, the margin contracted because cost of revenue did not fall as much as revenue.
- Relative to the prior quarter, revenue and gross profit were lower while gross margin held steady. Versus the same quarter a year earlier, all three metrics were lower, with gross margin also declining.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
56.6%
Gross profit
$379.5M
Revenue
$670.6M
Cost of revenue
$291.1M
Quarter-over-quarter change
+0.0 pts
Year-over-year change
-0.9 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% |
| Oct 1, 2023 | $703.7M | $398.3M | $305.4M | 56.6% |
| Dec 31, 2023 | $670.6M | $379.5M | $291.1M | 56.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 1, 2023
+0.0 pts
Year-over-year change
Dec 31, 2022
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin was unchanged from the preceding quarter as cost of revenue declined in proportion to revenue. However, compared to the prior year, the margin contracted because cost of revenue did not fall as much as revenue.
Relative to the prior quarter, revenue and gross profit were lower while gross margin held steady. Versus the same quarter a year earlier, all three metrics were lower, with gross margin also declining.
Monitor the relationship between cost of revenue and revenue to see if the margin can stabilize or improve.