GE Vernova Inc. stock research
FY2024 Q1
GE Vernova (GEV) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit decreased from the prior quarter but increased from the same quarter last year. Gross margin weakened sequentially but improved year over year.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit decreased from the prior quarter but increased from the same quarter last year. Gross margin weakened sequentially but improved year over year.
- The gross margin decline from the prior quarter was driven by cost of revenue falling at a slower rate than revenue, resulting in a higher cost ratio. Compared to the same quarter last year, the margin improvement came from a larger increase in gross profit relative to revenue.
- Sequentially, gross margin was lower as revenue and gross profit both declined. Year over year, gross margin was higher, with revenue and gross profit increasing.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
15.8%
Gross profit
$1.1B
Revenue
$7.3B
Cost of revenue
$6.1B
Quarter-over-quarter change
-1.1 pts
Year-over-year change
+2.4 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 | $8.1B | $1.1B | $7.0B | 14.1% |
| Sep 30, 2023 | $8.3B | $1.1B | $7.2B | 12.7% |
| Dec 31, 2023 | $10.0B | $1.7B | $8.3B | 16.9% |
| Mar 31, 2024 | $7.3B | $1.1B | $6.1B | 15.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-1.1 pts
Year-over-year change
Mar 31, 2023
+2.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin decline from the prior quarter was driven by cost of revenue falling at a slower rate than revenue, resulting in a higher cost ratio. Compared to the same quarter last year, the margin improvement came from a larger increase in gross profit relative to revenue.
Sequentially, gross margin was lower as revenue and gross profit both declined. Year over year, gross margin was higher, with revenue and gross profit increasing.
Monitor the trend of cost of revenue relative to revenue, as it directly influences gross margin.