Weyerhaeuser Company stock research
FY2023 Q1
Weyerhaeuser (WY) Gross Margin — Quarter Ended Mar 31, 2023
Revenue increased from the prior quarter but gross profit declined, causing gross margin to weaken. Compared to the same quarter last year, both revenue and gross profit were substantially lower, and gross margin weakened significantly.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue increased from the prior quarter but gross profit declined, causing gross margin to weaken. Compared to the same quarter last year, both revenue and gross profit were substantially lower, and gross margin weakened significantly.
- The margin change was driven by the relationship between revenue and cost of revenue: revenue rose sequentially but cost of revenue rose more, while year-over-year revenue fell much more than cost of revenue.
- Sequentially, gross margin weakened as revenue growth was outpaced by cost of revenue growth. Year-over-year, gross margin weakened considerably as revenue fell while cost of revenue declined only modestly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
19.6%
Gross profit
$369.0M
Revenue
$1.9B
Cost of revenue
$1.5B
Quarter-over-quarter change
n/a
Year-over-year change
-27.5 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 | $1.9B | $369.0M | $1.5B | 19.6% |
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
-27.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The margin change was driven by the relationship between revenue and cost of revenue: revenue rose sequentially but cost of revenue rose more, while year-over-year revenue fell much more than cost of revenue.
Sequentially, gross margin weakened as revenue growth was outpaced by cost of revenue growth. Year-over-year, gross margin weakened considerably as revenue fell while cost of revenue declined only modestly.
Monitor the trend in cost of revenue relative to revenue, as it has been the key factor in margin compression.