PW

Quanta Services, Inc. stock research

Jun 30, 2024

FY2024 Q2

Quanta Services (PWR) Gross Margin — Quarter Ended Jun 30, 2024

In the current quarter, revenue and gross profit rose compared to both the prior quarter and the year-ago period. Gross margin strengthened from the prior quarter and remained above the year-ago figure, as the increase in cost of revenue was proportionally smaller than the revenue growth.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

In the current quarter, revenue and gross profit rose compared to both the prior quarter and the year-ago period. Gross margin strengthened from the prior quarter and remained above the year-ago figure, as the increase in cost of revenue was proportionally smaller than the revenue growth.

  • The strongest observable margin driver is the relationship between revenue and cost of revenue; revenue growth outpaced cost of revenue growth, leading to an expansion in gross margin.
  • Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin was slightly higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

14.5%

Gross profit

$811.3M

Revenue

$5.6B

Cost of revenue

$4.8B

Quarter-over-quarter change

+2.1 pts

Year-over-year change

+0.2 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$5.6B$847.3M$4.8B15.1%
Dec 31, 2023$5.8B$792.5M$5.0B13.7%
Mar 31, 2024$5.0B$623.5M$4.4B12.4%
Jun 30, 2024$5.6B$811.3M$4.8B14.5%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2024

+2.1 pts

Year-over-year change

Jun 30, 2023

+0.2 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 and cost of revenue; revenue growth outpaced cost of revenue growth, leading to an expansion in gross margin.

Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin was slightly higher.

Monitor the company's forward-looking statements regarding margins as noted in the management discussion and risk factors.

PWR Gross Margin — Quarter Ended Jun 30, 2024