Albemarle Corporation stock research
FY2023 Q1
Albemarle (ALB) Gross Margin — Quarter Ended Mar 31, 2023
Gross margin improved markedly compared to both the prior quarter and the same quarter a year earlier, driven by revenue growth that outpaced cost increases versus last year and a decline in cost of revenue relative to the prior quarter.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Gross margin improved markedly compared to both the prior quarter and the same quarter a year earlier, driven by revenue growth that outpaced cost increases versus last year and a decline in cost of revenue relative to the prior quarter.
- The strongest observable driver is the lower cost of revenue relative to the previous quarter, as revenue stayed stable while cost of revenue declined, expanding gross profit.
- Revenue was higher than a year ago and flat compared with the previous quarter. Gross profit and gross margin were both higher than both comparison periods, as cost of revenue rose less than revenue year-over-year and fell sequentially.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
49.5%
Gross profit
$1.3B
Revenue
$2.6B
Cost of revenue
$1.3B
Quarter-over-quarter change
n/a
Year-over-year change
+9.7 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 | $2.6B | $1.3B | $1.3B | 49.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+9.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the lower cost of revenue relative to the previous quarter, as revenue stayed stable while cost of revenue declined, expanding gross profit.
Revenue was higher than a year ago and flat compared with the previous quarter. Gross profit and gross margin were both higher than both comparison periods, as cost of revenue rose less than revenue year-over-year and fell sequentially.
Monitor whether the lower cost of revenue relative to revenue can be sustained in coming quarters.