Quanta Services, Inc. stock research
FY2023 Q1
Quanta Services (PWR) Gross Margin — Quarter Ended Mar 31, 2023
Revenue was stable compared to the prior quarter, but cost of revenue was higher, resulting in lower gross profit and a weakened gross margin. Compared to the same quarter last year, both revenue and cost of revenue increased, but the growth in cost outpaced revenue, leading to a lower gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue was stable compared to the prior quarter, but cost of revenue was higher, resulting in lower gross profit and a weakened gross margin. Compared to the same quarter last year, both revenue and cost of revenue increased, but the growth in cost outpaced revenue, leading to a lower gross margin.
- The most observable driver of the gross margin decline is the increase in cost of revenue, which rose faster than the change in revenue relative to both the prior quarter and the year-ago quarter.
- Compared to the prior quarter, gross margin weakened as gross profit decreased while revenue remained flat. Compared to the same quarter one year earlier, gross margin also weakened, as gross profit increased by a smaller proportion than the rise in revenue and cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
12.9%
Gross profit
$573.2M
Revenue
$4.4B
Cost of revenue
$3.9B
Quarter-over-quarter change
n/a
Year-over-year change
-0.9 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 | $4.4B | $573.2M | $3.9B | 12.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the gross margin decline is the increase in cost of revenue, which rose faster than the change in revenue relative to both the prior quarter and the year-ago quarter.
Compared to the prior quarter, gross margin weakened as gross profit decreased while revenue remained flat. Compared to the same quarter one year earlier, gross margin also weakened, as gross profit increased by a smaller proportion than the rise in revenue and cost of revenue.
Monitor the trajectory of cost of revenue relative to revenue in future quarters.