Waste Management, Inc. stock research
FY2024 Q1
Waste Management (WM) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and cost of revenue were unchanged compared to the prior quarter, while gross profit decreased slightly, leading to a marginally lower gross margin. Compared to the same quarter last year, revenue and gross profit both increased, while cost of revenue remained unchanged, resulting in a higher gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and cost of revenue were unchanged compared to the prior quarter, while gross profit decreased slightly, leading to a marginally lower gross margin. Compared to the same quarter last year, revenue and gross profit both increased, while cost of revenue remained unchanged, resulting in a higher gross margin.
- Gross margin improved on a year-over-year basis, driven by gross profit growth that outpaced the change in revenue. The strongest observable margin driver in the current quarter is the revenue growth relative to the prior year, given that cost of revenue was flat over that period.
- Compared to the preceding quarter, revenue was stable, cost of revenue was stable, but gross profit was slightly lower, resulting in a modest weakening of gross margin. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was unchanged, and gross margin improved meaningfully.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.1%
Gross profit
$2.0B
Revenue
$5.2B
Cost of revenue
$3.1B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
+2.2 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $5.1B | $1.9B | $3.2B | 37.8% |
| Sep 30, 2023 | $5.2B | $2.0B | $3.2B | 38.7% |
| Dec 31, 2023 | $5.2B | $2.1B | $3.1B | 39.7% |
| Mar 31, 2024 | $5.2B | $2.0B | $3.1B | 39.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-0.6 pts
Year-over-year change
Mar 31, 2023
+2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved on a year-over-year basis, driven by gross profit growth that outpaced the change in revenue. The strongest observable margin driver in the current quarter is the revenue growth relative to the prior year, given that cost of revenue was flat over that period.
Compared to the preceding quarter, revenue was stable, cost of revenue was stable, but gross profit was slightly lower, resulting in a modest weakening of gross margin. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was unchanged, and gross margin improved meaningfully.
Monitor the trajectory of revenue relative to cost of revenue to see if the year-over-year margin improvement can be sustained or broadened.