Archer-Daniels-Midland Company stock research
FY2024 Q3
Archer-Daniels-Midland (ADM) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin improved slightly from the prior quarter but weakened significantly from a year ago.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin improved slightly from the prior quarter but weakened significantly from a year ago.
- The strongest observable margin driver is the relationship between cost of revenue and revenue; cost of revenue fell more sharply than revenue from the prior quarter, supporting a slight margin improvement. However, compared to a year ago, cost of revenue declined less than revenue, leading to margin compression.
- Compared to the prior quarter, revenue was lower, gross profit was stable, and gross margin was slightly higher. Compared to the same quarter last year, revenue, gross profit, and gross margin were all lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
22.8%
Gross profit
$1.4B
Revenue
$6.0B
Cost of revenue
$18.6B
Quarter-over-quarter change
+0.1 pts
Year-over-year change
-5.5 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $6.4B | $1.8B | $19.9B | 28.3% |
| Mar 31, 2024 | $5.9B | $1.7B | $20.2B | 27.9% |
| Jun 30, 2024 | $6.2B | $1.4B | $20.9B | 22.7% |
| Sep 30, 2024 | $6.0B | $1.4B | $18.6B | 22.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.1 pts
Year-over-year change
Sep 30, 2023
-5.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between cost of revenue and revenue; cost of revenue fell more sharply than revenue from the prior quarter, supporting a slight margin improvement. However, compared to a year ago, cost of revenue declined less than revenue, leading to margin compression.
Compared to the prior quarter, revenue was lower, gross profit was stable, and gross margin was slightly higher. Compared to the same quarter last year, revenue, gross profit, and gross margin were all lower.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters, as its movement has been a key factor in margin changes.