GE Vernova Inc. stock research
FY2024 Q3
GE Vernova (GEV) Gross Margin — Quarter Ended Sep 30, 2024
Revenue increased compared to both the prior quarter and the same quarter last year, but gross profit decreased sharply from the prior quarter and was roughly flat from a year ago. The gross margin weakened significantly from the prior quarter and was slightly lower than the year-ago period, driven by a larger increase in cost of revenue relative to revenue.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue increased compared to both the prior quarter and the same quarter last year, but gross profit decreased sharply from the prior quarter and was roughly flat from a year ago. The gross margin weakened significantly from the prior quarter and was slightly lower than the year-ago period, driven by a larger increase in cost of revenue relative to revenue.
- The primary margin driver is the relationship between revenue and cost of revenue: revenue increased but cost of revenue rose at a faster pace, compressing gross profit and the gross margin.
- Compared to the previous quarter, gross margin weakened as gross profit declined despite higher revenue. Versus the same quarter a year ago, gross margin was slightly lower, with gross profit essentially unchanged while revenue was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
12.4%
Gross profit
$1.1B
Revenue
$8.9B
Cost of revenue
$7.8B
Quarter-over-quarter change
-8.3 pts
Year-over-year change
-0.3 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $10.0B | $1.7B | $8.3B | 16.9% |
| Mar 31, 2024 | $7.3B | $1.1B | $6.1B | 15.8% |
| Jun 30, 2024 | $8.2B | $1.7B | $6.5B | 20.7% |
| Sep 30, 2024 | $8.9B | $1.1B | $7.8B | 12.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-8.3 pts
Year-over-year change
Sep 30, 2023
-0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary margin driver is the relationship between revenue and cost of revenue: revenue increased but cost of revenue rose at a faster pace, compressing gross profit and the gross margin.
Compared to the previous quarter, gross margin weakened as gross profit declined despite higher revenue. Versus the same quarter a year ago, gross margin was slightly lower, with gross profit essentially unchanged while revenue was higher.
Monitor the trend in gross profit relative to revenue, as cost of revenue growth outpaced revenue growth this quarter.