CN

CenterPoint Energy, Inc. stock research

Sep 30, 2023

FY2023 Q3

CenterPoint Energy (CNP) Gross Margin — Quarter Ended Sep 30, 2023

Revenue remained stable across the current, prior, and year-ago quarters, while gross profit increased slightly and cost of revenue decreased sharply, resulting in a higher gross margin.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q3

Revenue remained stable across the current, prior, and year-ago quarters, while gross profit increased slightly and cost of revenue decreased sharply, resulting in a higher gross margin.

  • The strongest observable margin driver is the reduction in cost of revenue compared to both the prior quarter and the same quarter last year, which directly improved gross profit and gross margin.
  • Compared to the immediately preceding quarter and the same quarter one year earlier, gross margin improved, driven by lower cost of revenue while revenue was essentially unchanged.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

99.9%

Gross profit

$1.9B

Revenue

$1.9B

Cost of revenue

$1.0M

Quarter-over-quarter change

+3.0 pts

Year-over-year change

+2.7 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$2.8B$2.7B$40.0M98.6%
Jun 30, 2023$1.9B$1.8B$57.0M97.0%
Sep 30, 2023$1.9B$1.9B$1.0M99.9%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2023

+3.0 pts

Year-over-year change

Sep 30, 2022

+2.7 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the reduction in cost of revenue compared to both the prior quarter and the same quarter last year, which directly improved gross profit and gross margin.

Compared to the immediately preceding quarter and the same quarter one year earlier, gross margin improved, driven by lower cost of revenue while revenue was essentially unchanged.

Monitor the cost of revenue line item for sustainability of its current low level, given its significant decline from prior periods.