Generac Holdings Inc. stock research
FY2024 Q3
Generac Holdings (GNRC) Gross Margin — Quarter Ended Sep 30, 2024
Revenue, gross profit, and gross margin all increased compared to both the prior quarter and the same quarter last year. Cost of revenue also rose, but gross profit grew more than both revenue and cost of revenue, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue, gross profit, and gross margin all increased compared to both the prior quarter and the same quarter last year. Cost of revenue also rose, but gross profit grew more than both revenue and cost of revenue, resulting in an improved gross margin.
- The primary driver of the margin improvement was the increase in gross profit, which rose more than both revenue and cost of revenue.
- Compared to the previous quarter, revenue, gross profit, cost of revenue, and gross margin were all higher. The year-over-year comparison shows similar improvements, with gross margin higher than a year ago.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
40.2%
Gross profit
$472.3M
Revenue
$1.2B
Cost of revenue
$701.3M
Quarter-over-quarter change
+2.6 pts
Year-over-year change
+5.1 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $1.2B | $472.3M | $701.3M | 40.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+2.6 pts
Year-over-year change
Sep 30, 2023
+5.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the margin improvement was the increase in gross profit, which rose more than both revenue and cost of revenue.
Compared to the previous quarter, revenue, gross profit, cost of revenue, and gross margin were all higher. The year-over-year comparison shows similar improvements, with gross margin higher than a year ago.
Monitor whether revenue growth continues to sustain the gross margin expansion relative to cost of revenue trends.