CenterPoint Energy, Inc. stock research
FY2024 Q3
CenterPoint Energy (CNP) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit in the current quarter were nearly identical, with cost of revenue being minimal, resulting in a gross margin close to one hundred percent. Compared to the prior quarter, revenue and gross profit were lower, cost of revenue increased from zero to a small amount, and gross margin slightly weakened; versus the same quarter a year ago, revenue and gross profit were lower, while cost of revenue and gross margin were stable.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit in the current quarter were nearly identical, with cost of revenue being minimal, resulting in a gross margin close to one hundred percent. Compared to the prior quarter, revenue and gross profit were lower, cost of revenue increased from zero to a small amount, and gross margin slightly weakened; versus the same quarter a year ago, revenue and gross profit were lower, while cost of revenue and gross margin were stable.
- The strongest observable driver of gross margin is the exceptionally low cost of revenue, which accounts for a negligible fraction of revenue, allowing the margin to remain near one hundred percent.
- Revenue and gross profit in the current quarter were lower than both the prior quarter and the year-ago quarter. Cost of revenue increased from zero in the prior quarter to a small positive amount, causing gross margin to decrease slightly from one hundred percent; year-over-year, cost of revenue was unchanged and gross margin was stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
99.9%
Gross profit
$1.8B
Revenue
$1.8B
Cost of revenue
$1.0M
Quarter-over-quarter change
-0.1 pts
Year-over-year change
-0.0 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 | $2.1B | $2.1B | $1.0M | 100.0% |
| Mar 31, 2024 | $2.6B | $2.6B | $1.0M | 100.0% |
| Jun 30, 2024 | $1.9B | $1.9B | $0 | 100.0% |
| Sep 30, 2024 | $1.8B | $1.8B | $1.0M | 99.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-0.1 pts
Year-over-year change
Sep 30, 2023
-0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of gross margin is the exceptionally low cost of revenue, which accounts for a negligible fraction of revenue, allowing the margin to remain near one hundred percent.
Revenue and gross profit in the current quarter were lower than both the prior quarter and the year-ago quarter. Cost of revenue increased from zero in the prior quarter to a small positive amount, causing gross margin to decrease slightly from one hundred percent; year-over-year, cost of revenue was unchanged and gross margin was stable.
Monitor the cost of revenue line item, as even a small increase could materially affect the near-perfect gross margin.