WEC Energy Group, Inc. stock research
FY2023 Q4
WEC Energy Group (WEC) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit were higher than the prior quarter, while cost of revenue also increased. Gross margin weakened compared to three months ago but improved from the same quarter one year earlier.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit were higher than the prior quarter, while cost of revenue also increased. Gross margin weakened compared to three months ago but improved from the same quarter one year earlier.
- Gross profit grew from the prior quarter at a slower pace than revenue, causing gross margin to decline. Cost of revenue increased more rapidly than revenue relative to the linked quarter.
- Compared to the prior quarter, gross margin was lower; revenue was higher but cost of revenue rose disproportionately. Versus the same quarter one year ago, gross margin was higher, supported by a larger proportion of revenue converting to gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
65.7%
Gross profit
$1.5B
Revenue
$2.2B
Cost of revenue
$761.1M
Quarter-over-quarter change
-4.3 pts
Year-over-year change
+14.0 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% |
| Dec 31, 2023 | $2.2B | $1.5B | $761.1M | 65.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-4.3 pts
Year-over-year change
Dec 31, 2022
+14.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew from the prior quarter at a slower pace than revenue, causing gross margin to decline. Cost of revenue increased more rapidly than revenue relative to the linked quarter.
Compared to the prior quarter, gross margin was lower; revenue was higher but cost of revenue rose disproportionately. Versus the same quarter one year ago, gross margin was higher, supported by a larger proportion of revenue converting to gross profit.
Monitor the relationship between cost of revenue and revenue in upcoming quarters, as the current quarter showed a stronger cost growth relative to revenue versus the prior period.