First Solar, Inc. stock research
FY2023 Q4
First Solar (FSLR) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue also rose, resulting in a gross margin that was lower than the prior quarter but substantially higher than the year-ago quarter.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Cost of revenue also rose, resulting in a gross margin that was lower than the prior quarter but substantially higher than the year-ago quarter.
- The gross margin improved significantly from the same quarter one year earlier, driven by a larger increase in gross profit relative to the rise in cost of revenue. Compared to the immediately preceding quarter, the gross margin weakened as cost of revenue grew faster than revenue.
- Revenue and gross profit were higher than both the prior quarter and the year-ago quarter. Gross margin was lower than the prior quarter but higher than the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.3%
Gross profit
$502.0M
Revenue
$1.2B
Cost of revenue
$656.5M
Quarter-over-quarter change
-3.6 pts
Year-over-year change
+37.3 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% |
| Jun 30, 2023 | $810.7M | $310.4M | $500.3M | 38.3% |
| Sep 30, 2023 | $801.1M | $376.2M | $424.9M | 47.0% |
| Dec 31, 2023 | $1.2B | $502.0M | $656.5M | 43.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-3.6 pts
Year-over-year change
Dec 31, 2022
+37.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved significantly from the same quarter one year earlier, driven by a larger increase in gross profit relative to the rise in cost of revenue. Compared to the immediately preceding quarter, the gross margin weakened as cost of revenue grew faster than revenue.
Revenue and gross profit were higher than both the prior quarter and the year-ago quarter. Gross margin was lower than the prior quarter but higher than the year-ago quarter.
Monitor the relationship between revenue growth and cost of revenue growth, as the current quarter showed cost of revenue increasing faster than revenue compared to the prior quarter.