Generac Holdings Inc. stock research
FY2024 Q1
Generac Holdings (GNRC) Gross Margin — Quarter Ended Mar 31, 2024
Current quarter gross margin is higher than the same quarter last year but slightly lower than the prior quarter, reflecting improved cost efficiency year over year while a greater decline in revenue relative to cost reduction led to a marginal sequential weakening.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Current quarter gross margin is higher than the same quarter last year but slightly lower than the prior quarter, reflecting improved cost efficiency year over year while a greater decline in revenue relative to cost reduction led to a marginal sequential weakening.
- The strongest observable margin driver is the improvement in cost of revenue relative to revenue compared with the year-ago period, as revenue remained nearly stable while costs decreased.
- Compared with the immediately preceding quarter, revenue and gross profit both decreased and gross margin weakened slightly. Versus the same quarter one year ago, revenue was nearly flat while gross profit increased and gross margin improved notably.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
35.6%
Gross profit
$316.4M
Revenue
$889.3M
Cost of revenue
$572.9M
Quarter-over-quarter change
+0.5 pts
Year-over-year change
+4.9 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% |
| Sep 30, 2023 | $1.1B | $375.8M | $694.9M | 35.1% |
| Mar 31, 2024 | $889.3M | $316.4M | $572.9M | 35.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+0.5 pts
Year-over-year change
Mar 31, 2023
+4.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the improvement in cost of revenue relative to revenue compared with the year-ago period, as revenue remained nearly stable while costs decreased.
Compared with the immediately preceding quarter, revenue and gross profit both decreased and gross margin weakened slightly. Versus the same quarter one year ago, revenue was nearly flat while gross profit increased and gross margin improved notably.
Monitor whether the gross margin can sustain its year-over-year improvement in the coming quarters.