The AES Corporation stock research
FY2023 Q4
The AES (AES) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit decreased compared to the immediately preceding quarter, while cost of revenue was stable, leading to a lower gross margin. Compared to the same quarter one year earlier, revenue was slightly higher and gross profit was lower, resulting in a weaker gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit decreased compared to the immediately preceding quarter, while cost of revenue was stable, leading to a lower gross margin. Compared to the same quarter one year earlier, revenue was slightly higher and gross profit was lower, resulting in a weaker gross margin.
- The gross margin declined versus both the prior quarter and the year-ago quarter, driven by a higher proportion of cost of revenue relative to revenue. The change in gross profit was more pronounced than the change in revenue, indicating margin pressure.
- Compared to the immediately preceding quarter, revenue was lower and gross profit was lower, while cost of revenue remained at a similar level, resulting in a weakened gross margin. Compared to the same quarter one year earlier, revenue was slightly higher but gross profit was lower, leading to a gross margin that weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
16.6%
Gross profit
$494.0M
Revenue
$3.0B
Cost of revenue
$2.5B
Quarter-over-quarter change
-10.1 pts
Year-over-year change
-1.8 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% |
| Sep 30, 2023 | $3.4B | $918.0M | $2.5B | 26.7% |
| Dec 31, 2023 | $3.0B | $494.0M | $2.5B | 16.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-10.1 pts
Year-over-year change
Dec 31, 2022
-1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin declined versus both the prior quarter and the year-ago quarter, driven by a higher proportion of cost of revenue relative to revenue. The change in gross profit was more pronounced than the change in revenue, indicating margin pressure.
Compared to the immediately preceding quarter, revenue was lower and gross profit was lower, while cost of revenue remained at a similar level, resulting in a weakened gross margin. Compared to the same quarter one year earlier, revenue was slightly higher but gross profit was lower, leading to a gross margin that weakened.
Monitor whether the relationship between cost of revenue and revenue continues to shift, as cost of revenue remained steady while revenue changed significantly.