VM

Vulcan Materials Company stock research

Mar 31, 2024

FY2024 Q1

Vulcan Materials (VMC) Gross Margin — Quarter Ended Mar 31, 2024

Revenue and gross profit both decreased compared to the prior quarter, while gross margin weakened. Compared to the same quarter last year, revenue was slightly lower but gross profit was similar, resulting in an improved gross margin.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q1

Revenue and gross profit both decreased compared to the prior quarter, while gross margin weakened. Compared to the same quarter last year, revenue was slightly lower but gross profit was similar, resulting in an improved gross margin.

  • The change in cost of revenue relative to revenue was the primary observable factor. Year-over-year, cost of revenue declined more than revenue, supporting margin improvement; sequentially, revenue fell more than cost of revenue, pressuring margin.
  • Compared to the prior quarter, revenue, gross profit, and gross margin were all lower. Compared to the same quarter last year, revenue was slightly lower, gross profit was roughly flat, and gross margin was higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

19.7%

Gross profit

$304.9M

Revenue

$1.5B

Cost of revenue

$1.2B

Quarter-over-quarter change

-6.0 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.

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2023$2.1B$583.3M$1.5B27.6%
Sep 30, 2023$2.2B$591.0M$1.6B27.0%
Dec 31, 2023$1.8B$472.2M$1.4B25.7%
Mar 31, 2024$1.5B$304.9M$1.2B19.7%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 31, 2023

-6.0 pts

Year-over-year change

Mar 31, 2023

+1.4 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The change in cost of revenue relative to revenue was the primary observable factor. Year-over-year, cost of revenue declined more than revenue, supporting margin improvement; sequentially, revenue fell more than cost of revenue, pressuring margin.

Compared to the prior quarter, revenue, gross profit, and gross margin were all lower. Compared to the same quarter last year, revenue was slightly lower, gross profit was roughly flat, and gross margin was higher.

Monitor the trend in cost of revenue relative to revenue, particularly the sequential decline in gross margin.

VMC Gross Margin — Quarter Ended Mar 31, 2024