Waste Management, Inc. stock research
FY2023 Q2
Waste Management (WM) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both increased compared to both the prior quarter and the same quarter one year ago. Gross margin improved versus the preceding quarter but was roughly flat compared to the prior year period.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit both increased compared to both the prior quarter and the same quarter one year ago. Gross margin improved versus the preceding quarter but was roughly flat compared to the prior year period.
- Gross margin improved sequentially, reflecting faster growth in gross profit relative to cost of revenue. The year-over-year comparison shows gross margin remained stable.
- Current-quarter revenue and gross profit are higher than both the immediately preceding quarter and the same quarter one year earlier. Gross margin strengthened slightly from the prior quarter but was similar to the year-ago level.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.8%
Gross profit
$1.9B
Revenue
$5.1B
Cost of revenue
$3.2B
Quarter-over-quarter change
+0.8 pts
Year-over-year change
+0.3 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 | $4.9B | $1.8B | $3.1B | 36.9% |
| Jun 30, 2023 | $5.1B | $1.9B | $3.2B | 37.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+0.8 pts
Year-over-year change
Jun 30, 2022
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved sequentially, reflecting faster growth in gross profit relative to cost of revenue. The year-over-year comparison shows gross margin remained stable.
Current-quarter revenue and gross profit are higher than both the immediately preceding quarter and the same quarter one year earlier. Gross margin strengthened slightly from the prior quarter but was similar to the year-ago level.
Monitor the trend in cost of revenue relative to revenue, as its growth rate influences the direction of gross margin.