CenterPoint Energy, Inc. stock research
FY2023 Q2
CenterPoint Energy (CNP) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue increased. Gross margin weakened slightly from the prior quarter and was stable compared to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue increased. Gross margin weakened slightly from the prior quarter and was stable compared to the same quarter one year earlier.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue declined more sharply than cost of revenue, which compressed gross margin.
- Compared to the prior quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
97.0%
Gross profit
$1.8B
Revenue
$1.9B
Cost of revenue
$57.0M
Quarter-over-quarter change
-1.6 pts
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% |
| Jun 30, 2023 | $1.9B | $1.8B | $57.0M | 97.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-1.6 pts
Year-over-year change
Jun 30, 2022
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue declined more sharply than cost of revenue, which compressed gross margin.
Compared to the prior quarter, gross margin was lower. Compared to the same quarter one year earlier, gross margin was stable.
Monitor the trend in cost of revenue relative to revenue, as a smaller decline in cost of revenue could continue to pressure gross margin.