WE

WEC Energy Group, Inc. stock research

Mar 31, 2024

FY2024 Q1

WEC Energy Group (WEC) Gross Margin — Quarter Ended Mar 31, 2024

Revenue rose from the prior quarter and gross profit increased, while cost of revenue also rose. The gross margin weakened slightly from the immediate prior quarter but improved compared to the same quarter one year earlier.

Gross margin takeaway

Quarter ended Mar 31, 2024 · FY2024 Q1

Revenue rose from the prior quarter and gross profit increased, while cost of revenue also rose. The gross margin weakened slightly from the immediate prior quarter but improved compared to the same quarter one year earlier.

  • The strongest observable driver is the gross margin level this quarter, which is higher than the year-ago quarter but slightly lower than the prior quarter.
  • Compared to the immediately preceding quarter, revenue is higher and gross profit is higher, but gross margin is slightly lower. Compared to the same quarter one year earlier, revenue is lower, gross profit is higher, and gross margin is higher.

Gross margin snapshot

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

Gross margin

65.4%

Gross profit

$1.8B

Revenue

$2.7B

Cost of revenue

$927.1M

Quarter-over-quarter change

-0.3 pts

Year-over-year change

+10.8 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Jun 30, 2023$1.8B$1.3B$533.0M70.9%
Sep 30, 2023$2.0B$1.4B$587.4M70.0%
Dec 31, 2023$2.2B$1.5B$761.1M65.7%
Mar 31, 2024$2.7B$1.8B$927.1M65.4%

Quarterly comparisons

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

Previous-quarter change

Dec 31, 2023

-0.3 pts

Year-over-year change

Mar 31, 2023

+10.8 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable driver is the gross margin level this quarter, which is higher than the year-ago quarter but slightly lower than the prior quarter.

Compared to the immediately preceding quarter, revenue is higher and gross profit is higher, but gross margin is slightly lower. Compared to the same quarter one year earlier, revenue is lower, gross profit is higher, and gross margin is higher.

Monitor the trend of gross margin relative to revenue, given the marginal weakening from the prior quarter despite higher revenue.