WE

WEC Energy Group, Inc. stock research

Jun 30, 2024

FY2024 Q2

WEC Energy Group (WEC) Gross Margin — Quarter Ended Jun 30, 2024

Revenue was nearly stable compared with the same quarter one year earlier, while cost of revenue decreased, resulting in a higher gross profit and gross margin. Compared with the immediately preceding quarter, revenue was lower and cost of revenue declined more sharply, leading to a higher gross margin.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue was nearly stable compared with the same quarter one year earlier, while cost of revenue decreased, resulting in a higher gross profit and gross margin. Compared with the immediately preceding quarter, revenue was lower and cost of revenue declined more sharply, leading to a higher gross margin.

  • The comparison with the immediately preceding quarter shows that cost of revenue declined faster than revenue, which was the strongest observable driver of the gross margin improvement.
  • Gross margin improved from the prior quarter and also improved from the same quarter one year earlier. Revenue was unchanged year over year and lower sequentially, while gross profit was slightly higher year over year and lower sequentially.

Gross margin snapshot

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

Gross margin

73.5%

Gross profit

$1.3B

Revenue

$1.8B

Cost of revenue

$469.7M

Quarter-over-quarter change

+8.1 pts

Year-over-year change

+2.6 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
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%
Jun 30, 2024$1.8B$1.3B$469.7M73.5%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2024

+8.1 pts

Year-over-year change

Jun 30, 2023

+2.6 pts

What the margin says

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

The comparison with the immediately preceding quarter shows that cost of revenue declined faster than revenue, which was the strongest observable driver of the gross margin improvement.

Gross margin improved from the prior quarter and also improved from the same quarter one year earlier. Revenue was unchanged year over year and lower sequentially, while gross profit was slightly higher year over year and lower sequentially.

Monitor the trend in cost of revenue, as its reduction relative to revenue was the primary factor in the margin improvement.