WY

Weyerhaeuser Company stock research

Dec 31, 2023

FY2023 Q4

Weyerhaeuser (WY) Gross Margin — Quarter Ended Dec 31, 2023

Revenue was unchanged from a year earlier but lower than the prior quarter, while gross profit declined both sequentially and year-over-year. Cost of revenue decreased slightly from the prior quarter but was stable year-over-year, resulting in a gross margin that weakened compared with both periods.

Gross margin takeaway

Quarter ended Dec 31, 2023 · FY2023 Q4

Revenue was unchanged from a year earlier but lower than the prior quarter, while gross profit declined both sequentially and year-over-year. Cost of revenue decreased slightly from the prior quarter but was stable year-over-year, resulting in a gross margin that weakened compared with both periods.

  • The strongest observable margin driver is the disproportionate movement between revenue and cost of revenue: revenue fell from the prior quarter while cost of revenue declined by a smaller relative amount, compressing gross profit and margin.
  • Compared with the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Versus the same quarter one year earlier, revenue and cost of revenue were stable, but gross profit was lower and gross margin weakened.

Gross margin snapshot

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

Gross margin

19.3%

Gross profit

$342.0M

Revenue

$1.8B

Cost of revenue

$1.4B

Quarter-over-quarter change

-5.5 pts

Year-over-year change

-2.1 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%
Dec 31, 2023$1.8B$342.0M$1.4B19.3%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2023

-5.5 pts

Year-over-year change

Dec 31, 2022

-2.1 pts

What the margin says

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

The strongest observable margin driver is the disproportionate movement between revenue and cost of revenue: revenue fell from the prior quarter while cost of revenue declined by a smaller relative amount, compressing gross profit and margin.

Compared with the immediately preceding quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin weakened. Versus the same quarter one year earlier, revenue and cost of revenue were stable, but gross profit was lower and gross margin weakened.

Monitor the relationship between cost of revenue and revenue in upcoming quarters to assess whether margin pressure persists.

WY Gross Margin — Quarter Ended Dec 31, 2023