First Solar, Inc. stock research
FY2023 Q3
First Solar (FSLR) Gross Margin — Quarter Ended Sep 30, 2023
Revenue declined slightly from the prior quarter but rose compared to the same quarter last year. Gross profit increased substantially both sequentially and year-over-year, while cost of revenue decreased, leading to a higher gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue declined slightly from the prior quarter but rose compared to the same quarter last year. Gross profit increased substantially both sequentially and year-over-year, while cost of revenue decreased, leading to a higher gross margin.
- The primary observable driver of the margin improvement was the reduction in cost of revenue relative to revenue, as cost of revenue declined while revenue grew year-over-year and held nearly stable sequentially.
- Compared to the prior quarter, revenue was slightly lower, but gross profit improved and cost of revenue declined, resulting in a higher gross margin. Compared to the same quarter a year ago, revenue increased, gross profit rose significantly, cost of revenue fell, and gross margin was substantially higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
47.0%
Gross profit
$376.2M
Revenue
$801.1M
Cost of revenue
$424.9M
Quarter-over-quarter change
+8.7 pts
Year-over-year change
+43.6 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% |
| Sep 30, 2023 | $801.1M | $376.2M | $424.9M | 47.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+8.7 pts
Year-over-year change
Sep 30, 2022
+43.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver of the margin improvement was the reduction in cost of revenue relative to revenue, as cost of revenue declined while revenue grew year-over-year and held nearly stable sequentially.
Compared to the prior quarter, revenue was slightly lower, but gross profit improved and cost of revenue declined, resulting in a higher gross margin. Compared to the same quarter a year ago, revenue increased, gross profit rose significantly, cost of revenue fell, and gross margin was substantially higher.
Monitor the company's capital expenditure plans for new U.S. manufacturing and R&D facilities, as described in the liquidity section, which could influence future cost structure.