First Solar, Inc. stock research
FY2024 Q3
First Solar (FSLR) Gross Margin — Quarter Ended Sep 30, 2024
The most recent quarter's gross margin improved compared to both the preceding quarter and the same quarter one year earlier, driven by a decrease in cost of revenue relative to revenue. Revenue and gross profit were lower than the preceding quarter but higher than the year-ago quarter.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
The most recent quarter's gross margin improved compared to both the preceding quarter and the same quarter one year earlier, driven by a decrease in cost of revenue relative to revenue. Revenue and gross profit were lower than the preceding quarter but higher than the year-ago quarter.
- The strongest observable margin driver was the reduction in cost of revenue as a proportion of revenue, which allowed gross margin to expand despite a sequential decline in revenue.
- Gross margin in the current quarter was higher than in the immediate preceding quarter and also higher than the same quarter one year earlier. Revenue decreased sequentially but increased year-over-year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
50.2%
Gross profit
$445.3M
Revenue
$887.7M
Cost of revenue
$442.4M
Quarter-over-quarter change
+0.8 pts
Year-over-year change
+3.2 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $887.7M | $445.3M | $442.4M | 50.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.8 pts
Year-over-year change
Sep 30, 2023
+3.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was the reduction in cost of revenue as a proportion of revenue, which allowed gross margin to expand despite a sequential decline in revenue.
Gross margin in the current quarter was higher than in the immediate preceding quarter and also higher than the same quarter one year earlier. Revenue decreased sequentially but increased year-over-year.
Monitor the trend in cost of revenue relative to revenue, as it remains a key factor in gross margin performance.