WY

Weyerhaeuser Company stock research

Sep 30, 2023

FY2023 Q3

Weyerhaeuser (WY) Gross Margin — Quarter Ended Sep 30, 2023

Revenue was unchanged from the prior quarter but lower than a year ago. Gross profit improved sequentially while declining year-over-year, and cost of revenue was stable sequentially and lower year-over-year, resulting in a gross margin that improved from the prior quarter but weakened compared to the same quarter last year.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q3

Revenue was unchanged from the prior quarter but lower than a year ago. Gross profit improved sequentially while declining year-over-year, and cost of revenue was stable sequentially and lower year-over-year, resulting in a gross margin that improved from the prior quarter but weakened compared to the same quarter last year.

  • The sequential improvement in gross margin was driven by a higher gross profit relative to revenue, as revenue remained stable and cost of revenue was slightly lower.
  • Compared to the prior quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

24.8%

Gross profit

$502.0M

Revenue

$2.0B

Cost of revenue

$1.5B

Quarter-over-quarter change

+1.3 pts

Year-over-year change

-0.7 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$1.9B$369.0M$1.5B19.6%
Jun 30, 2023$2.0B$469.0M$1.5B23.5%
Sep 30, 2023$2.0B$502.0M$1.5B24.8%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2023

+1.3 pts

Year-over-year change

Sep 30, 2022

-0.7 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The sequential improvement in gross margin was driven by a higher gross profit relative to revenue, as revenue remained stable and cost of revenue was slightly lower.

Compared to the prior quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.

Monitor the trend in cash from operations, which decreased due to lower cash inflows from business operations as noted in the filing.