The AES Corporation stock research
FY2022 Q2
The AES (AES) Gross Margin — Quarter Ended Jun 30, 2023
Revenue decreased and cost of revenue decreased less, causing gross profit to decline and gross margin to weaken. Compared to the same quarter one year earlier, revenue increased while cost of revenue increased more, resulting in a lower gross profit and a significantly weakened gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2022 Q2
Revenue decreased and cost of revenue decreased less, causing gross profit to decline and gross margin to weaken. Compared to the same quarter one year earlier, revenue increased while cost of revenue increased more, resulting in a lower gross profit and a significantly weakened gross margin.
- The relationship among revenue, gross profit, cost of revenue, and gross margin indicates that cost of revenue did not decline proportionally with revenue in the sequential comparison, and grew faster than revenue in the year-over-year comparison. The strongest observable driver is the relative movement of cost of revenue compared to revenue.
- Sequentially, revenue and gross profit both decreased, and gross margin weakened. Year over year, revenue increased but gross profit decreased, and gross margin weakened substantially.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
16.5%
Gross profit
$498.0M
Revenue
$3.0B
Cost of revenue
$2.5B
Quarter-over-quarter change
-1.9 pts
Year-over-year change
-10.5 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $3.2B | $594.0M | $2.6B | 18.3% |
| Jun 30, 2023 | $3.0B | $498.0M | $2.5B | 16.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-1.9 pts
Year-over-year change
Jun 30, 2021
-10.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship among revenue, gross profit, cost of revenue, and gross margin indicates that cost of revenue did not decline proportionally with revenue in the sequential comparison, and grew faster than revenue in the year-over-year comparison. The strongest observable driver is the relative movement of cost of revenue compared to revenue.
Sequentially, revenue and gross profit both decreased, and gross margin weakened. Year over year, revenue increased but gross profit decreased, and gross margin weakened substantially.
Monitor the trend in cost of revenue relative to revenue, as its disproportionate movement is the primary factor affecting margin performance.