WEC Energy Group, Inc. stock research
FY2023 Q1
WEC Energy Group (WEC) Gross Margin — Quarter Ended Mar 31, 2023
Revenue was unchanged from the same quarter one year earlier, while cost of revenue decreased, leading to higher gross profit and an improved gross margin. Compared to the previous quarter, revenue increased and cost of revenue rose less, resulting in a higher gross profit and a further improved gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue was unchanged from the same quarter one year earlier, while cost of revenue decreased, leading to higher gross profit and an improved gross margin. Compared to the previous quarter, revenue increased and cost of revenue rose less, resulting in a higher gross profit and a further improved gross margin.
- The strongest observable margin driver is the reduction in cost of revenue compared to the prior year, combined with a slower increase in cost relative to revenue sequentially.
- Gross margin improved both sequentially and versus the same quarter last year, reflecting higher gross profit relative to revenue in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
54.7%
Gross profit
$1.6B
Revenue
$2.9B
Cost of revenue
$1.3B
Quarter-over-quarter change
n/a
Year-over-year change
+2.2 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 | $2.9B | $1.6B | $1.3B | 54.7% |
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
+2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the reduction in cost of revenue compared to the prior year, combined with a slower increase in cost relative to revenue sequentially.
Gross margin improved both sequentially and versus the same quarter last year, reflecting higher gross profit relative to revenue in both comparisons.
Monitor the trajectory of cost of revenue in relation to revenue, as recent trends have been favorable for margin expansion.