Quanta Services, Inc. stock research
FY2024 Q3
Quanta Services (PWR) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved from the prior quarter but was slightly lower than the year-ago period.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved from the prior quarter but was slightly lower than the year-ago period.
- The strongest observable margin driver is the relationship between revenue growth and cost of revenue growth; revenue increased at a faster pace than cost of revenue compared to the prior quarter, leading to margin improvement.
- Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
15.6%
Gross profit
$1.0B
Revenue
$6.5B
Cost of revenue
$5.5B
Quarter-over-quarter change
+1.1 pts
Year-over-year change
+0.5 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $5.8B | $792.5M | $5.0B | 13.7% |
| Mar 31, 2024 | $5.0B | $623.5M | $4.4B | 12.4% |
| Jun 30, 2024 | $5.6B | $811.3M | $4.8B | 14.5% |
| Sep 30, 2024 | $6.5B | $1.0B | $5.5B | 15.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+1.1 pts
Year-over-year change
Sep 30, 2023
+0.5 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 at a faster pace than cost of revenue compared to the prior quarter, leading to margin improvement.
Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin was slightly lower.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess margin sustainability.