The AES Corporation stock research
FY2024 Q2
The AES (AES) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and cost of revenue both decreased, with gross profit declining as well, resulting in a lower gross margin compared to the prior quarter. Relative to the same quarter last year, revenue was lower but gross profit was higher, and cost of revenue was lower, leading to an improved gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and cost of revenue both decreased, with gross profit declining as well, resulting in a lower gross margin compared to the prior quarter. Relative to the same quarter last year, revenue was lower but gross profit was higher, and cost of revenue was lower, leading to an improved gross margin.
- The strongest observable margin driver is the change in the relationship between cost of revenue and revenue. Compared to the prior year, cost of revenue declined relative to revenue, lifting gross margin, whereas sequentially the ratio increased, compressing margin.
- Gross margin improved compared to the same quarter one year earlier but weakened compared to the immediately preceding quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
18.8%
Gross profit
$553.0M
Revenue
$2.9B
Cost of revenue
$2.4B
Quarter-over-quarter change
-1.3 pts
Year-over-year change
+2.3 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $2.9B | $553.0M | $2.4B | 18.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-1.3 pts
Year-over-year change
Jun 30, 2023
+2.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in the relationship between cost of revenue and revenue. Compared to the prior year, cost of revenue declined relative to revenue, lifting gross margin, whereas sequentially the ratio increased, compressing margin.
Gross margin improved compared to the same quarter one year earlier but weakened compared to the immediately preceding quarter.
Monitor the trajectory of cost of revenue relative to revenue, as it has been the primary factor in gross margin changes.