Weyerhaeuser Company stock research
FY2023 Q2
Weyerhaeuser (WY) Gross Margin — Quarter Ended Jun 30, 2023
Revenue increased while cost of revenue remained stable, leading to a higher gross profit and an improved gross margin compared to the prior quarter. However, both revenue and gross profit were lower than the same quarter last year, resulting in a weakened gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue increased while cost of revenue remained stable, leading to a higher gross profit and an improved gross margin compared to the prior quarter. However, both revenue and gross profit were lower than the same quarter last year, resulting in a weakened gross margin.
- The most observable driver of the gross margin improvement is the increase in revenue with no corresponding increase in cost of revenue, which directly lifted gross profit.
- Compared to the immediately preceding quarter, gross margin improved as revenue rose and cost of revenue held steady. Compared to the same quarter one year earlier, gross margin weakened significantly as revenue and gross profit were substantially lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
23.5%
Gross profit
$469.0M
Revenue
$2.0B
Cost of revenue
$1.5B
Quarter-over-quarter change
+3.9 pts
Year-over-year change
-16.3 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 | $1.9B | $369.0M | $1.5B | 19.6% |
| Jun 30, 2023 | $2.0B | $469.0M | $1.5B | 23.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+3.9 pts
Year-over-year change
Jun 30, 2022
-16.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the gross margin improvement is the increase in revenue with no corresponding increase in cost of revenue, which directly lifted gross profit.
Compared to the immediately preceding quarter, gross margin improved as revenue rose and cost of revenue held steady. Compared to the same quarter one year earlier, gross margin weakened significantly as revenue and gross profit were substantially lower.
Monitor the trend in cash from operations, which decreased notably year-to-date compared to the prior year period, as noted in the filing.