First Solar, Inc. stock research
FY2023 Q1
First Solar (FSLR) Gross Margin — Quarter Ended Mar 31, 2023
In the current quarter, revenue was lower than the preceding quarter but higher than the same quarter one year earlier. Gross profit and gross margin improved compared to both periods, as cost of revenue increased at a slower rate than revenue relative to the year-ago quarter and decreased in absolute terms from the prior quarter.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
In the current quarter, revenue was lower than the preceding quarter but higher than the same quarter one year earlier. Gross profit and gross margin improved compared to both periods, as cost of revenue increased at a slower rate than revenue relative to the year-ago quarter and decreased in absolute terms from the prior quarter.
- The most significant factor was the change in cost of revenue relative to revenue; the cost of revenue was lower in absolute terms compared to the prior quarter while revenue declined, and compared to the year-ago quarter, cost of revenue increased less than revenue.
- Compared to the immediately preceding quarter, revenue was lower but gross profit was higher, leading to a substantial improvement in gross margin. Relative to the same quarter one year earlier, revenue, gross profit, and gross margin all increased.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
20.4%
Gross profit
$112.1M
Revenue
$548.3M
Cost of revenue
$436.2M
Quarter-over-quarter change
n/a
Year-over-year change
+17.3 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 | $548.3M | $112.1M | $436.2M | 20.4% |
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
+17.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most significant factor was the change in cost of revenue relative to revenue; the cost of revenue was lower in absolute terms compared to the prior quarter while revenue declined, and compared to the year-ago quarter, cost of revenue increased less than revenue.
Compared to the immediately preceding quarter, revenue was lower but gross profit was higher, leading to a substantial improvement in gross margin. Relative to the same quarter one year earlier, revenue, gross profit, and gross margin all increased.
Monitor the trend of cost of revenue relative to revenue in future quarters.