Vulcan Materials Company stock research
FY2023 Q2
Vulcan Materials (VMC) Gross Margin — Quarter Ended Jun 30, 2023
Revenue increased compared to both the preceding quarter and the same quarter one year earlier. Gross profit rose at a faster pace than the cost of revenue, resulting in an improved gross margin for the current quarter.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue increased compared to both the preceding quarter and the same quarter one year earlier. Gross profit rose at a faster pace than the cost of revenue, resulting in an improved gross margin for the current quarter.
- The most observable driver is the change in cost of revenue relative to revenue. Compared to the prior quarter, cost of revenue grew at a slower rate than revenue, and compared to the same quarter last year, cost of revenue was unchanged while revenue increased, leading to margin expansion.
- Gross margin improved compared to both the preceding quarter and the same quarter one year earlier. Revenue and gross profit were higher in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
27.6%
Gross profit
$583.3M
Revenue
$2.1B
Cost of revenue
$1.5B
Quarter-over-quarter change
+9.3 pts
Year-over-year change
+4.8 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $1.6B | $302.0M | $1.3B | 18.3% |
| Jun 30, 2023 | $2.1B | $583.3M | $1.5B | 27.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+9.3 pts
Year-over-year change
Jun 30, 2022
+4.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver is the change in cost of revenue relative to revenue. Compared to the prior quarter, cost of revenue grew at a slower rate than revenue, and compared to the same quarter last year, cost of revenue was unchanged while revenue increased, leading to margin expansion.
Gross margin improved compared to both the preceding quarter and the same quarter one year earlier. Revenue and gross profit were higher in both comparisons.
Monitor the trajectory of cost of revenue in future quarters, as it remained stable year over year but increased from the prior quarter.