Generac Holdings Inc. stock research
FY2024 Q2
Generac Holdings (GNRC) Gross Margin — Quarter Ended Jun 30, 2024
Current quarter gross margin improved compared to both the prior quarter and the same quarter last year. Revenue was slightly lower than a year ago but higher than the previous quarter, while gross profit increased and cost of revenue decreased relative to the year-ago period.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Current quarter gross margin improved compared to both the prior quarter and the same quarter last year. Revenue was slightly lower than a year ago but higher than the previous quarter, while gross profit increased and cost of revenue decreased relative to the year-ago period.
- The improvement in gross margin was driven by cost of revenue increasing at a slower pace than revenue compared to the prior quarter, and by a decrease in cost of revenue while revenue remained nearly flat compared to the same quarter last year.
- Compared to the prior quarter, all metrics increased with gross margin expanding. Compared to the same quarter last year, revenue was slightly lower but gross profit was higher due to a lower cost of revenue, resulting in a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.6%
Gross profit
$375.6M
Revenue
$998.2M
Cost of revenue
$622.6M
Quarter-over-quarter change
+2.0 pts
Year-over-year change
+4.8 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 | $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% |
| Jun 30, 2024 | $998.2M | $375.6M | $622.6M | 37.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+2.0 pts
Year-over-year change
Jun 30, 2023
+4.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was driven by cost of revenue increasing at a slower pace than revenue compared to the prior quarter, and by a decrease in cost of revenue while revenue remained nearly flat compared to the same quarter last year.
Compared to the prior quarter, all metrics increased with gross margin expanding. Compared to the same quarter last year, revenue was slightly lower but gross profit was higher due to a lower cost of revenue, resulting in a higher gross margin.
Monitor the trend in cost of revenue relative to revenue, as this relationship is key to sustaining gross margin levels.