First Solar, Inc. stock research
FY2024 Q2
First Solar (FSLR) Gross Margin — Quarter Ended Jun 30, 2024
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue was lower than the prior quarter but slightly higher than a year ago. Gross profit and gross margin both improved relative to the two comparison periods, reflecting a stronger relationship between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue was lower than the prior quarter but slightly higher than a year ago. Gross profit and gross margin both improved relative to the two comparison periods, reflecting a stronger relationship between revenue and cost of revenue.
- The gross margin improved sequentially and year-over-year, driven by a larger increase in revenue relative to the change in cost of revenue. The strongest observable driver is the revenue growth outpacing cost growth, which widened gross profit.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was lower. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were higher, with cost of revenue slightly higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
49.4%
Gross profit
$498.9M
Revenue
$1.0B
Cost of revenue
$511.6M
Quarter-over-quarter change
+5.8 pts
Year-over-year change
+11.1 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $1.0B | $498.9M | $511.6M | 49.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+5.8 pts
Year-over-year change
Jun 30, 2023
+11.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially and year-over-year, driven by a larger increase in revenue relative to the change in cost of revenue. The strongest observable driver is the revenue growth outpacing cost growth, which widened gross profit.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was lower. Versus the same quarter one year earlier, revenue, gross profit, and gross margin were higher, with cost of revenue slightly higher.
Monitor the trajectory of cost of revenue relative to revenue, as its movement influences gross margin stability.