WA

Westinghouse Air Brake Technologies Corporation stock research

Mar 31, 2023

FY2023 Q1

Westinghouse Air Brake Technologies (WAB) Gross Margin — Quarter Ended Mar 31, 2023

In the current quarter, revenue and cost of revenue both decreased compared to the prior quarter, while gross profit increased. The gross margin improved relative to the preceding quarter but was slightly lower than the same quarter one year earlier.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q1

In the current quarter, revenue and cost of revenue both decreased compared to the prior quarter, while gross profit increased. The gross margin improved relative to the preceding quarter but was slightly lower than the same quarter one year earlier.

  • The sequential margin improvement was most closely associated with the cost of revenue declining more than the decrease in revenue.
  • Compared to the immediately preceding quarter, gross margin improved as cost of revenue fell more sharply than revenue. Compared to the same quarter a year ago, gross margin was slightly lower, with both revenue and cost of revenue higher.

Gross margin snapshot

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

Gross margin

30.3%

Gross profit

$665.0M

Revenue

$2.2B

Cost of revenue

$1.5B

Quarter-over-quarter change

n/a

Year-over-year change

-0.6 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$2.2B$665.0M$1.5B30.3%

Quarterly comparisons

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

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Mar 31, 2022

-0.6 pts

What the margin says

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

The sequential margin improvement was most closely associated with the cost of revenue declining more than the decrease in revenue.

Compared to the immediately preceding quarter, gross margin improved as cost of revenue fell more sharply than revenue. Compared to the same quarter a year ago, gross margin was slightly lower, with both revenue and cost of revenue higher.

Monitor the change in inventory levels, which increased from the end of the prior quarter.