The AES Corporation stock research
FY2024 Q3
The AES (AES) Gross Margin — Quarter Ended Sep 30, 2024
Revenue increased compared to the prior quarter, while gross profit rose, resulting in a gross margin improvement. Versus the same period one year earlier, revenue was lower, gross profit was lower, and gross margin weakened.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue increased compared to the prior quarter, while gross profit rose, resulting in a gross margin improvement. Versus the same period one year earlier, revenue was lower, gross profit was lower, and gross margin weakened.
- The relationship between revenue and cost of revenue shifted favorably from the prior quarter: cost of revenue grew more slowly than revenue, allowing gross profit to expand and gross margin to rise. Compared to the year-ago quarter, cost of revenue fell, but not enough to offset the larger decline in revenue, compressing gross profit and margin.
- Gross margin improved sequentially but remained below the level of the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
22.0%
Gross profit
$722.0M
Revenue
$3.3B
Cost of revenue
$2.6B
Quarter-over-quarter change
+3.2 pts
Year-over-year change
-4.8 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $3.3B | $722.0M | $2.6B | 22.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+3.2 pts
Year-over-year change
Sep 30, 2023
-4.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue shifted favorably from the prior quarter: cost of revenue grew more slowly than revenue, allowing gross profit to expand and gross margin to rise. Compared to the year-ago quarter, cost of revenue fell, but not enough to offset the larger decline in revenue, compressing gross profit and margin.
Gross margin improved sequentially but remained below the level of the same quarter one year earlier.
Monitor whether the cost of revenue can continue to increase at a slower pace than revenue to sustain margin improvement.