Westinghouse Air Brake Technologies Corporation stock research
FY2023 Q4
Westinghouse Air Brake Technologies (WAB) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit were lower than the prior quarter but higher than the same quarter last year. Gross margin weakened sequentially but improved year-over-year.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit were lower than the prior quarter but higher than the same quarter last year. Gross margin weakened sequentially but improved year-over-year.
- Gross margin improved year-over-year as revenue growth outpaced the increase in cost of revenue. Sequentially, margin declined as revenue decreased while cost of revenue remained stable.
- Compared to the prior quarter, revenue and gross profit were lower and gross margin weakened. Compared to the same quarter one year ago, revenue, gross profit, and gross margin were all higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
30.2%
Gross profit
$764.0M
Revenue
$2.5B
Cost of revenue
$1.8B
Quarter-over-quarter change
-0.8 pts
Year-over-year change
+2.0 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% |
| Dec 31, 2023 | $2.5B | $764.0M | $1.8B | 30.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-0.8 pts
Year-over-year change
Dec 31, 2022
+2.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved year-over-year as revenue growth outpaced the increase in cost of revenue. Sequentially, margin declined as revenue decreased while cost of revenue remained stable.
Compared to the prior quarter, revenue and gross profit were lower and gross margin weakened. Compared to the same quarter one year ago, revenue, gross profit, and gross margin were all higher.
Monitor inventory levels and cost of revenue trends, as the company noted inventory increases to support sales in its liquidity discussion.