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Although this is not great news, I would like to point out that a major piece of the revenue shortfall was resale revenue, which is low margin, and we have conscientiously reduced over the last few years to limit our dependency on this type of revenue. So, in the short term, the underrun and resale revenue impacts bottom-line profit.
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Finally, Q3 industrial resales of $164 million declined 31% year on year. We believe we are approaching bottom in Q3 as Q4 resales are expected to recover sequentially. Year on year, Q4 industrial resales will still be down approximately 20%. billion tax liability. The offset to that is a deferred tax liability.
year to year organically as services revenue was down 8% in line with prior quarter, and resale declined 19%. largely due to disciplined resource management, ongoing actions to optimize our data centers and networks, and the lower mix of resale revenue. The resale element is a relatively small component of the improvement.
Cloud infrastructure and IT outsourcing organic revenue declined 7%, an improvement from double-digit declines we saw in the prior three quarters due to a significant resale transaction delivered in the quarter. Modern Workplace organic revenue declined year to year in the mid-teens impacted by resale revenue, which was down 30%.
By this, I mean further reducing low-margin resale revenue and driving a higher level of services, including those directly associated with AI and automation. Our results continue to be impacted by the year-to-year decline of resale revenues, which was 90 basis points of the 4.5% Our financial focus is on improving the business mix.
Measure on resales, Q4 industrial resales of $173 million declined 27% year on year. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. And reflecting this trend, we now expect broadband to show recovery beginning in Q1. The Motley Fool recommends Broadcom.
These tenants allow us to target the biggest piece of the potential homebuyer pool by effectively competing its resale inventory, not just in today's environment that favors builders but also when the resale market returns to historical averages. Stephen Kim -- Analyst Yes, I appreciate that's really helpful.
Finally, Q2 industrial resale of $234 million declined 10% year on year. And for fiscal '24, we now expect industrial resale to be down double-digit percentage year on year, compared to our prior guidance for high single-digit decline. So, to sum it all up, here's what we are seeing. The Motley Fool recommends Broadcom.
First, on the resale market, I'm curious some of your thoughts there. And when I think about the spec entry-level model, I think you guys have really benefited from the tight resale market over the last few years. Inventories, we have certainly seen more inventory in the market today on the resale side than we have in the past.
But I think one of the great unknowns and uncertainty is what impact that does have on the resale market as far as, you know, potentially freeing up some inventory and getting some people to move. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
While resale revenues performed as expected, down 28% year over year, services revenue declined 8% helped by higher-than-anticipated in-quarter volumes. The lower mix of resale revenue also contributed to the year-to-year margin improvement. Moving to GIS. Profit margin expanded over two points to 7.3%. The book-to-bill ratio was 0.67
And in markets where there's pressure on insurance, we see a consistent and relatively stable insurance premiums, which are our competitive advantage against the resale market. Somewhat a necessity given the supply chain, somewhat out of -- that's where the demand was given the tight resale market. John Lovallo -- Analyst Understood.
And the most unsure part of the market has been the resale market just due to the availability of inventory. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned.
year to year organically and services revenue was down approximately 7% and resale fell approximately 16%. 3Q resale was down approximately 2%, improving from steeper declines in recent quarters, and we continue to be selective on our resale opportunities based on deal economics. The book-to-bill ratio of 1.51
year-to-year decline, 160 basis points came from a reduced level of low-margin resale revenues, which was in line with our expectations. The second factor is the decline in resale revenues which drove 41% of our second quarter decrease in Cloud and ITO. Adjusted EBIT margin came in at 7.3%, also above our guidance range.
With this program, we are creating the foundation that we'll leverage as we begin to activate the right side of our flywheel and enable customer lifetime value through services, notably beginning with trade-in and resales. And then secondly, can you maybe give us a little bit more color on your trading and resale initiative?
And finally, Q1 industrial resales of $215 million declined 6% year on year. In fiscal '24, we continue to expand industrial resales to be down high single digits year upon year. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
Stuart, you know, first question, when you kind of talk about the net price decline, the net kind of 10%, 11% range, you know, historically, the typical spread between a new home and a resale, I believe, has been around 15%. You know, the resale market is inventory very, very constrained. I'm not sure.
Tight inventory levels in the resale and new home market propelled demand for available new homes, and we offered a combination of attractive pricing and compelling mortgage rate programs to capture that demand. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
Obviously, resale inventory was incredibly tight. So, I guess my question is now that cycle times seem to be improving across the industry, resale inventory is ticking a little bit higher, are you thinking about that dynamic any differently? Over the last 12 months, we've been 24-plus months utilizing that incentive.
And obviously, new build has been a really bright spot in the market over the last couple of years versus what we're seeing in resale. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. But it is a very, very positive business for us because it's predictable.
Our performance has kept the Children's Place brands in the leadership position on social media, representing close to 50% of total social impressions among our children apparel resale competitive set. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
Resources that can be used to enhance output or resale so that can be leveraged to support other areas of the business. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. How we can improve process to do more with less is key to this technology.
Industrial resales were 962 million. In fiscal '24, we expect industrial resales to be down low single digits year on year. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
At a high level, the housing market remains healthy with demand supported by strong fundamentals, including household formations and migration trends, years of underproduction and a lock-in effect limiting the supply of resale homes. Additionally, we're witnessing a resilient labor market with historically low unemployment.
The fundamentals of the housing market are strong, supported by continued household formations, years of underproduction and limited supply of resale homes. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. Finally, the U.S.
And lastly, the resale home market remains tight as existing buyers are hesitant to leave their low rate mortgages, which limits available inventory and helps to increase new home demand. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
But in that oil and gas purchase for resale, remember that still includes the Cheniere contract, which, of course, has nothing to do with Waha differentials. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. And it just pays for the transport and fuel costs.
During the spring selling season with a healthy supply of move-in ready inventory, we were able to capitalize on strong market conditions generated by the increasing need for housing for millennials and Gen Zs as well as the move-down Baby Boomers who continue to find our limited inventory, limited availability of resale housing supply.
And you've got a slew of new products, you've got an expanded partnership strategy, you've got resale -- reseller partnership strategy as well. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Workday.
Professional homebuilders and real estate developers are excluded from being forced to comply with the marketing restrictions Clear Cooperation places on individual homeowners in the resale market, which puts individual homeowners at a disadvantage. The Motley Fool has no position in any of the stocks mentioned.
Last week, we launched our resale platform piloting with our own associates before launching a customer facing experience in the near future. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Lovesac.
million annual resale transactions in time. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. There will be an event an eventual return to a mid-cycle range of 5.3 million to 5.5 I am cautiously optimistic about 2024. The Motley Fool has a disclosure policy.
And today, it's about taking market share from single families -- single-family market because it's so upside down on a cost to rent perspective and lack of inventory in the resale market. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.
As we previously discussed, two of the largest population cohorts, the millennials and recently Gen Zs are having life events lean to increased levels of need-based housing that currently cannot be met by the constrained resale of home supply in the market. The Motley Fool recommends Meritage Homes. The Motley Fool has a disclosure policy.
The second bucket is that we have scaled back certain lower margin revenue streams, including some of the resale businesses within cloud, including the live streaming entertainment that I referred to earlier, at Tencent Music and Huya. So, that's one bucket. The Motley Fool has positions in and recommends Tencent.
On one hand, the buydowns are probably putting you guys in such a strong competitive advantage versus the resale market. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned.
When you have this much mortgage interest rate volatility and you're guaranteeing people loans for 30 years, you're going to have a long-term problem with resale inventory. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. That should ease a little bit every year.
We sell our produce gas and basin, and we manage the transport obligation by purchasing third-party gas in basin for resale on the Gulf Coast. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Apa.
Has there been any move to kind of diversify your end markets to resale beyond China to help reduce the concentration there? Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. And then secondly, on the hyperscale ALM business.
Finally, Q3 industrial resales of $236 million declined 3% year on year, reflecting weak demand in China. And in Q4, though, we expect an improvement with industrial resales up low single-digit percentage year on year, reflecting largely seasonality. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy.
And then finally, in your accounts payable in your accrued liabilities line, your year-over-year increase that is a benefit was about 380 million. Now, you guys don't disaggregate accounts payable from accrued liabilities. We do see some areas of weakness, again, in things like existing home resale, some of that's done by pros as well.
resale -- 3.8 million resales with 700,000 new construction, we could hopefully see somewhere in that 4 million, 4.5 Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. So if we end the year somewhere between 3.8 million transactional range for next year.
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