Quanta Services, Inc. stock research
FY2023 Q4
Quanta Services (PWR) Gross Margin — Quarter Ended Dec 31, 2023
Revenue increased from both the prior quarter and the same quarter last year, while gross profit was lower than the prior quarter but higher than the year-ago quarter. Cost of revenue rose in both comparisons, and gross margin weakened compared to both periods.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue increased from both the prior quarter and the same quarter last year, while gross profit was lower than the prior quarter but higher than the year-ago quarter. Cost of revenue rose in both comparisons, and gross margin weakened compared to both periods.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased while gross profit declined sequentially, indicating that cost of revenue grew at a faster rate than revenue.
- Compared to the immediately preceding quarter, gross margin weakened as gross profit decreased despite higher revenue. Compared to the same quarter one year earlier, gross margin also weakened, as revenue and cost of revenue both increased but gross profit did not keep pace proportionally.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
13.7%
Gross profit
$792.5M
Revenue
$5.8B
Cost of revenue
$5.0B
Quarter-over-quarter change
-1.4 pts
Year-over-year change
-1.4 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% |
| Sep 30, 2023 | $5.6B | $847.3M | $4.8B | 15.1% |
| Dec 31, 2023 | $5.8B | $792.5M | $5.0B | 13.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-1.4 pts
Year-over-year change
Dec 31, 2022
-1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased while gross profit declined sequentially, indicating that cost of revenue grew at a faster rate than revenue.
Compared to the immediately preceding quarter, gross margin weakened as gross profit decreased despite higher revenue. Compared to the same quarter one year earlier, gross margin also weakened, as revenue and cost of revenue both increased but gross profit did not keep pace proportionally.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth in the current quarter compressed gross margin.