Tyson Foods, Inc. stock research
FY2023 Q3
Tyson Foods (TSN) Gross Margin — Quarter Ended Jul 1, 2023
Revenue was unchanged from the prior quarter, while cost of revenue decreased, resulting in higher gross profit and an improved gross margin. Compared to the same quarter last year, revenue was lower and cost of revenue was higher, leading to a significantly lower gross profit and a weakened gross margin.
Gross margin takeaway
Quarter ended Jul 1, 2023 · FY2023 Q3
Revenue was unchanged from the prior quarter, while cost of revenue decreased, resulting in higher gross profit and an improved gross margin. Compared to the same quarter last year, revenue was lower and cost of revenue was higher, leading to a significantly lower gross profit and a weakened gross margin.
- The primary observable driver of the gross margin change was the movement in cost of revenue relative to revenue. Cost of revenue declined from the prior quarter while revenue held steady, directly lifting gross profit and margin.
- Gross margin improved compared to the immediately preceding quarter but weakened substantially compared to the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
5.2%
Gross profit
$677.0M
Revenue
$13.1B
Cost of revenue
$12.5B
Quarter-over-quarter change
+1.1 pts
Year-over-year change
-6.8 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 1, 2023 | $13.1B | $527.0M | $12.6B | 4.0% |
| Jul 1, 2023 | $13.1B | $677.0M | $12.5B | 5.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 1, 2023
+1.1 pts
Year-over-year change
Jul 2, 2022
-6.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the gross margin change was the movement in cost of revenue relative to revenue. Cost of revenue declined from the prior quarter while revenue held steady, directly lifting gross profit and margin.
Gross margin improved compared to the immediately preceding quarter but weakened substantially compared to the same quarter one year earlier.
Monitor the trajectory of cost of revenue, as its relationship with revenue has been the key factor in gross margin changes.