Zoetis Inc. stock research
FY2024 Q1
Zoetis (ZTS) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit were both higher compared to the same quarter one year earlier, while cost of revenue also increased. Gross margin remained stable versus the prior year quarter and improved sequentially from the immediately preceding quarter.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit were both higher compared to the same quarter one year earlier, while cost of revenue also increased. Gross margin remained stable versus the prior year quarter and improved sequentially from the immediately preceding quarter.
- The strongest observable margin driver is the sequential improvement in gross margin, which rose from the prior quarter as cost of revenue declined while revenue held steady.
- Compared to the immediately preceding quarter, gross margin was higher, driven by lower cost of revenue on similar revenue. Versus the same quarter one year earlier, gross margin was stable, with revenue and cost of revenue both higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.6%
Gross profit
$1.5B
Revenue
$2.2B
Cost of revenue
$643.0M
Quarter-over-quarter change
+3.5 pts
Year-over-year change
+0.0 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $2.2B | $1.6B | $607.0M | 72.2% |
| Sep 30, 2023 | $2.2B | $1.5B | $638.0M | 70.3% |
| Dec 31, 2023 | $2.2B | $1.5B | $728.0M | 67.1% |
| Mar 31, 2024 | $2.2B | $1.5B | $643.0M | 70.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+3.5 pts
Year-over-year change
Mar 31, 2023
+0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the sequential improvement in gross margin, which rose from the prior quarter as cost of revenue declined while revenue held steady.
Compared to the immediately preceding quarter, gross margin was higher, driven by lower cost of revenue on similar revenue. Versus the same quarter one year earlier, gross margin was stable, with revenue and cost of revenue both higher.
Monitor the trajectory of cost of revenue, which decreased sequentially but increased year-over-year, as its movement directly affects gross margin stability.