CenterPoint Energy, Inc. stock research
FY2023 Q1
CenterPoint Energy (CNP) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue declined, leading to a higher gross margin. Versus the same quarter last year, revenue was stable, gross profit was slightly lower, and cost of revenue was higher, resulting in a marginally weaker gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both increased compared to the prior quarter, while cost of revenue declined, leading to a higher gross margin. Versus the same quarter last year, revenue was stable, gross profit was slightly lower, and cost of revenue was higher, resulting in a marginally weaker gross margin.
- The strongest observable driver this quarter was the reduction in cost of revenue relative to the prior quarter, which narrowed the gap between revenue and gross profit. This improvement in cost efficiency was the primary factor behind the gross margin expansion.
- Compared to the immediately preceding quarter, the gross margin improved as revenue and gross profit rose while cost of revenue fell. Compared to the same quarter one year earlier, the gross margin weakened marginally, with revenue unchanged but gross profit slightly lower and cost of revenue higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
98.6%
Gross profit
$2.7B
Revenue
$2.8B
Cost of revenue
$40.0M
Quarter-over-quarter change
n/a
Year-over-year change
-0.2 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 | $2.8B | $2.7B | $40.0M | 98.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver this quarter was the reduction in cost of revenue relative to the prior quarter, which narrowed the gap between revenue and gross profit. This improvement in cost efficiency was the primary factor behind the gross margin expansion.
Compared to the immediately preceding quarter, the gross margin improved as revenue and gross profit rose while cost of revenue fell. Compared to the same quarter one year earlier, the gross margin weakened marginally, with revenue unchanged but gross profit slightly lower and cost of revenue higher.
Monitor the trajectory of cost of revenue, as its quarterly variability has recently influenced gross margin direction.