Quanta Services, Inc. stock research
FY2023 Q2
Quanta Services (PWR) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit both rose compared to the preceding quarter, while cost of revenue increased. Gross margin improved relative to the prior quarter but weakened compared to the same quarter a year earlier.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit both rose compared to the preceding quarter, while cost of revenue increased. Gross margin improved relative to the prior quarter but weakened compared to the same quarter a year earlier.
- The gross margin increased sequentially, driven by a proportionally larger gain in gross profit relative to the increase in revenue. This improvement occurred even as cost of revenue also rose.
- Compared to the prior quarter, gross margin was higher; compared to the same quarter last year, gross margin was lower. Revenue, gross profit, and cost of revenue were all higher than both prior periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
14.3%
Gross profit
$724.1M
Revenue
$5.0B
Cost of revenue
$4.3B
Quarter-over-quarter change
+1.4 pts
Year-over-year change
-0.4 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% |
| Jun 30, 2023 | $5.0B | $724.1M | $4.3B | 14.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+1.4 pts
Year-over-year change
Jun 30, 2022
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin increased sequentially, driven by a proportionally larger gain in gross profit relative to the increase in revenue. This improvement occurred even as cost of revenue also rose.
Compared to the prior quarter, gross margin was higher; compared to the same quarter last year, gross margin was lower. Revenue, gross profit, and cost of revenue were all higher than both prior periods.
Monitor whether the recent sequential improvement in gross margin can be sustained if revenue growth slows or cost of revenue increases at a faster pace.