Generac Holdings Inc. stock research
FY2023 Q2
Generac Holdings (GNRC) Gross Margin — Quarter Ended Jun 30, 2023
In the current quarter, revenue was lower than the same quarter last year but higher than the immediately preceding quarter. Gross profit moved in line with revenue, resulting in a gross margin that improved from the prior quarter but weakened compared to the year-ago period.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
In the current quarter, revenue was lower than the same quarter last year but higher than the immediately preceding quarter. Gross profit moved in line with revenue, resulting in a gross margin that improved from the prior quarter but weakened compared to the year-ago period.
- The strongest observable driver of gross margin was the relationship between revenue and cost of revenue. From the prior quarter, revenue increased while cost of revenue increased at a slower pace, improving margin; compared to a year ago, revenue declined while cost of revenue declined less, weakening margin.
- Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.8%
Gross profit
$328.4M
Revenue
$1.0B
Cost of revenue
$672.0M
Quarter-over-quarter change
+2.1 pts
Year-over-year change
-2.6 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $887.9M | $272.5M | $615.4M | 30.7% |
| Jun 30, 2023 | $1.0B | $328.4M | $672.0M | 32.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+2.1 pts
Year-over-year change
Jun 30, 2022
-2.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of gross margin was the relationship between revenue and cost of revenue. From the prior quarter, revenue increased while cost of revenue increased at a slower pace, improving margin; compared to a year ago, revenue declined while cost of revenue declined less, weakening margin.
Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Monitor the ratio of cost of revenue to revenue, as it has shown variability between quarters.