The AES Corporation stock research
FY2022 Q2
The AES (AES) Gross Margin — Quarter Ended Mar 31, 2024
In the current quarter, revenue and gross profit both increased compared to the prior quarter, while cost of revenue remained flat, leading to an improved gross margin. However, relative to the year-ago quarter, revenue rose but cost of revenue rose at a greater rate, resulting in a lower gross profit and a weakened gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2022 Q2
In the current quarter, revenue and gross profit both increased compared to the prior quarter, while cost of revenue remained flat, leading to an improved gross margin. However, relative to the year-ago quarter, revenue rose but cost of revenue rose at a greater rate, resulting in a lower gross profit and a weakened gross margin.
- The improvement in gross margin from the prior quarter was associated with revenue growth while cost of revenue did not change. This relationship is the most direct observable driver of the margin change.
- Compared to the immediately preceding quarter, gross margin improved as revenue increased and cost of revenue was unchanged. Compared to the same quarter one year earlier, gross margin weakened as revenue increased but cost of revenue increased more.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.1%
Gross profit
$619.0M
Revenue
$3.1B
Cost of revenue
$2.5B
Quarter-over-quarter change
+3.4 pts
Year-over-year change
-6.9 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 | $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% |
| Mar 31, 2024 | $3.1B | $619.0M | $2.5B | 20.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+3.4 pts
Year-over-year change
Jun 30, 2021
-6.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin from the prior quarter was associated with revenue growth while cost of revenue did not change. This relationship is the most direct observable driver of the margin change.
Compared to the immediately preceding quarter, gross margin improved as revenue increased and cost of revenue was unchanged. Compared to the same quarter one year earlier, gross margin weakened as revenue increased but cost of revenue increased more.
Monitor whether cost of revenue remains stable relative to revenue growth in upcoming quarters, as the year-over-year comparison shows cost of revenue increased disproportionately.