WEC Energy Group, Inc. stock research
FY2023 Q3
WEC Energy Group (WEC) Gross Margin — Quarter Ended Sep 30, 2023
Revenue was stable compared to the same quarter last year, while gross profit increased and cost of revenue declined, resulting in a stronger gross margin. Sequentially, revenue rose but gross profit grew relatively less, causing a slight weakening in gross margin from the prior quarter.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue was stable compared to the same quarter last year, while gross profit increased and cost of revenue declined, resulting in a stronger gross margin. Sequentially, revenue rose but gross profit grew relatively less, causing a slight weakening in gross margin from the prior quarter.
- The year-over-year improvement in gross margin was driven by a lower cost of revenue relative to revenue, as gross profit expanded while revenue was unchanged.
- Compared to the immediately preceding quarter, gross margin weakened slightly as revenue increased but cost of revenue grew at a faster pace relative to gross profit. Compared to the same quarter one year earlier, gross margin strengthened notably due to a lower cost of revenue and higher gross profit on stable revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.0%
Gross profit
$1.4B
Revenue
$2.0B
Cost of revenue
$587.4M
Quarter-over-quarter change
-0.9 pts
Year-over-year change
+10.2 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% |
| Jun 30, 2023 | $1.8B | $1.3B | $533.0M | 70.9% |
| Sep 30, 2023 | $2.0B | $1.4B | $587.4M | 70.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.9 pts
Year-over-year change
Sep 30, 2022
+10.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year improvement in gross margin was driven by a lower cost of revenue relative to revenue, as gross profit expanded while revenue was unchanged.
Compared to the immediately preceding quarter, gross margin weakened slightly as revenue increased but cost of revenue grew at a faster pace relative to gross profit. Compared to the same quarter one year earlier, gross margin strengthened notably due to a lower cost of revenue and higher gross profit on stable revenue.
Monitor the relationship between cost of revenue and revenue, as a smaller increase in cost of revenue relative to revenue supported the sequential revenue gain but compressed gross margin.