First Solar, Inc. stock research
FY2024 Q1
First Solar (FSLR) Gross Margin — Quarter Ended Mar 31, 2024
Revenue exceeded cost of revenue, generating a positive gross profit and gross margin. The filing notes the company's liquidity and capital resources, including cash flows and available credit, as sufficient for near-term needs.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue exceeded cost of revenue, generating a positive gross profit and gross margin. The filing notes the company's liquidity and capital resources, including cash flows and available credit, as sufficient for near-term needs.
- The strongest observable margin driver is the relationship between cost of revenue and revenue. Compared to the same quarter one year earlier, cost of revenue rose only slightly while revenue increased substantially, allowing gross profit to capture a much larger share of revenue.
- Compared to the immediately preceding quarter, revenue was lower and gross profit was lower, but gross margin improved slightly. Compared to the same quarter one year earlier, revenue was higher, gross profit was higher, and gross margin improved substantially.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.6%
Gross profit
$346.0M
Revenue
$794.1M
Cost of revenue
$448.1M
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+23.1 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $794.1M | $346.0M | $448.1M | 43.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+0.2 pts
Year-over-year change
Mar 31, 2023
+23.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between cost of revenue and revenue. Compared to the same quarter one year earlier, cost of revenue rose only slightly while revenue increased substantially, allowing gross profit to capture a much larger share of revenue.
Compared to the immediately preceding quarter, revenue was lower and gross profit was lower, but gross margin improved slightly. Compared to the same quarter one year earlier, revenue was higher, gross profit was higher, and gross margin improved substantially.
Monitor the trend in cost of revenue relative to revenue to assess whether the improved gross margin can be sustained.