Weyerhaeuser Company stock research
FY2024 Q3
Weyerhaeuser (WY) Gross Margin — Quarter Ended Sep 30, 2024
In the current quarter, revenue decreased compared to both the prior quarter and the same quarter last year, while cost of revenue also decreased but at a slower pace, resulting in a lower gross profit and a weakened gross margin. The gross margin declined from the previous quarter and from the year-ago period, reflecting a compression between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
In the current quarter, revenue decreased compared to both the prior quarter and the same quarter last year, while cost of revenue also decreased but at a slower pace, resulting in a lower gross profit and a weakened gross margin. The gross margin declined from the previous quarter and from the year-ago period, reflecting a compression between revenue and cost of revenue.
- The strongest observable driver is the decline in revenue relative to the cost of revenue, as revenue fell more sharply than cost, squeezing gross profit.
- Compared to the immediately preceding quarter, gross margin weakened; compared to the same quarter one year earlier, gross margin also weakened. Revenue was lower in both comparisons, while cost of revenue was slightly lower sequentially and unchanged year-over-year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
14.9%
Gross profit
$250.0M
Revenue
$1.7B
Cost of revenue
$1.4B
Quarter-over-quarter change
-6.0 pts
Year-over-year change
-10.0 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $1.8B | $342.0M | $1.4B | 19.3% |
| Mar 31, 2024 | $1.8B | $355.0M | $1.4B | 19.8% |
| Jun 30, 2024 | $1.9B | $404.0M | $1.5B | 20.8% |
| Sep 30, 2024 | $1.7B | $250.0M | $1.4B | 14.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-6.0 pts
Year-over-year change
Sep 30, 2023
-10.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the decline in revenue relative to the cost of revenue, as revenue fell more sharply than cost, squeezing gross profit.
Compared to the immediately preceding quarter, gross margin weakened; compared to the same quarter one year earlier, gross margin also weakened. Revenue was lower in both comparisons, while cost of revenue was slightly lower sequentially and unchanged year-over-year.
Monitor the trend in operating cash flows, as the filing notes a decrease from the prior year partly due to lower cash flows from business operations.