Westinghouse Air Brake Technologies Corporation stock research
FY2023 Q3
Westinghouse Air Brake Technologies (WAB) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved sequentially, reflecting a faster growth in gross profit relative to cost of revenue, and remained stable versus the year-ago period.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved sequentially, reflecting a faster growth in gross profit relative to cost of revenue, and remained stable versus the year-ago period.
- The strongest observable margin driver is the sequential improvement in gross margin, which rose from the prior quarter as gross profit increased at a proportionally higher rate than cost of revenue.
- Compared to the immediately preceding quarter, gross margin was higher and improved. Compared to the same quarter one year earlier, gross margin was stable, with both periods showing the same level.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.1%
Gross profit
$792.0M
Revenue
$2.5B
Cost of revenue
$1.8B
Quarter-over-quarter change
+1.0 pts
Year-over-year change
-0.1 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 | $2.2B | $665.0M | $1.5B | 30.3% |
| Jun 30, 2023 | $2.4B | $723.0M | $1.7B | 30.0% |
| Sep 30, 2023 | $2.5B | $792.0M | $1.8B | 31.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+1.0 pts
Year-over-year change
Sep 30, 2022
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sequential improvement in gross margin, which rose from the prior quarter as gross profit increased at a proportionally higher rate than cost of revenue.
Compared to the immediately preceding quarter, gross margin was higher and improved. Compared to the same quarter one year earlier, gross margin was stable, with both periods showing the same level.
Monitor the trend of cost of revenue relative to revenue, as its growth rate influences gross margin direction.