Veralto Corporation stock research
FY2024 Q1
Veralto (VLTO) Gross Margin — Quarter Ended Mar 29, 2024
In the current quarter, revenue was nearly flat, while gross profit increased slightly and cost of revenue decreased, which together lifted gross margin. Gross margin improved compared to both the immediately preceding quarter and the same quarter one year earlier.
Gross margin takeaway
Quarter ended Mar 29, 2024 · FY2024 Q1
In the current quarter, revenue was nearly flat, while gross profit increased slightly and cost of revenue decreased, which together lifted gross margin. Gross margin improved compared to both the immediately preceding quarter and the same quarter one year earlier.
- The decrease in cost of revenue relative to the prior quarter is the most observable factor supporting the gross margin improvement.
- Compared to the immediately preceding quarter, revenue was lower but gross profit was flat, with a lower cost of revenue leading to an improved gross margin. Versus the same quarter one year earlier, revenue was essentially unchanged, gross profit was higher, and cost of revenue was lower, resulting in a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
60.0%
Gross profit
$747.0M
Revenue
$1.2B
Cost of revenue
$499.0M
Quarter-over-quarter change
+2.0 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $1.3B | $724.0M | $529.0M | 57.8% |
| Sep 29, 2023 | $1.3B | $723.0M | $532.0M | 57.6% |
| Dec 31, 2023 | $1.3B | $746.0M | $542.0M | 57.9% |
| Mar 29, 2024 | $1.2B | $747.0M | $499.0M | 60.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+2.0 pts
Year-over-year change
Mar 31, 2023
+2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decrease in cost of revenue relative to the prior quarter is the most observable factor supporting the gross margin improvement.
Compared to the immediately preceding quarter, revenue was lower but gross profit was flat, with a lower cost of revenue leading to an improved gross margin. Versus the same quarter one year earlier, revenue was essentially unchanged, gross profit was higher, and cost of revenue was lower, resulting in a higher gross margin.
Monitor cost of revenue in the next quarter to see if the reduction from the prior quarter and prior year levels is maintained.