First Solar, Inc. stock research
FY2023 Q2
First Solar (FSLR) Gross Margin — Quarter Ended Jun 30, 2023
Revenue increased from both the immediately preceding quarter and the same quarter one year earlier, while cost of revenue decreased compared to the prior-year quarter but increased sequentially. Gross profit rose substantially from both comparison periods, leading to a gross margin that improved versus both the prior quarter and the year-ago quarter.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue increased from both the immediately preceding quarter and the same quarter one year earlier, while cost of revenue decreased compared to the prior-year quarter but increased sequentially. Gross profit rose substantially from both comparison periods, leading to a gross margin that improved versus both the prior quarter and the year-ago quarter.
- The most observable driver is the favorable relationship between revenue growth and cost of revenue improvement year-over-year, where revenue grew while cost of revenue declined, sharply widening gross profit. Sequentially, revenue increased faster than cost of revenue, also contributing to margin improvement.
- Gross profit was significantly higher than both the prior quarter and the year-ago quarter. Gross margin improved from a low single-digit level in the prior quarter to a much higher level, and turned positive from a negative margin one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.3%
Gross profit
$310.4M
Revenue
$810.7M
Cost of revenue
$500.3M
Quarter-over-quarter change
+17.9 pts
Year-over-year change
+42.0 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $548.3M | $112.1M | $436.2M | 20.4% |
| Jun 30, 2023 | $810.7M | $310.4M | $500.3M | 38.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+17.9 pts
Year-over-year change
Jun 30, 2022
+42.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver is the favorable relationship between revenue growth and cost of revenue improvement year-over-year, where revenue grew while cost of revenue declined, sharply widening gross profit. Sequentially, revenue increased faster than cost of revenue, also contributing to margin improvement.
Gross profit was significantly higher than both the prior quarter and the year-ago quarter. Gross margin improved from a low single-digit level in the prior quarter to a much higher level, and turned positive from a negative margin one year earlier.
Monitor the trajectory of revenue growth relative to cost of revenue changes in coming quarters, as the gross margin improvement in the current quarter was driven by a widening spread between the two.