Albemarle Corporation stock research
FY2023 Q3
Albemarle (ALB) Gross Margin — Quarter Ended Sep 30, 2023
For the quarter, revenue was slightly lower than the previous quarter but higher than a year ago. Gross profit narrowed dramatically, resulting in a gross margin that weakened significantly from both the preceding quarter and the same quarter one year earlier.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
For the quarter, revenue was slightly lower than the previous quarter but higher than a year ago. Gross profit narrowed dramatically, resulting in a gross margin that weakened significantly from both the preceding quarter and the same quarter one year earlier.
- The primary driver of the margin change was the relationship between revenue and cost of revenue. Cost of revenue nearly matched revenue, leaving minimal gross profit.
- Compared to the prior quarter, gross profit was substantially lower while cost of revenue was higher, leading to a much weaker gross margin. Year-over-year, revenue increased but gross profit decreased sharply, also pressuring the margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
2.4%
Gross profit
$54.9M
Revenue
$2.3B
Cost of revenue
$2.3B
Quarter-over-quarter change
-21.2 pts
Year-over-year change
-47.5 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $2.6B | $1.3B | $1.3B | 49.5% |
| Jun 30, 2023 | $2.4B | $558.5M | $1.8B | 23.6% |
| Sep 30, 2023 | $2.3B | $54.9M | $2.3B | 2.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-21.2 pts
Year-over-year change
Sep 30, 2022
-47.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the margin change was the relationship between revenue and cost of revenue. Cost of revenue nearly matched revenue, leaving minimal gross profit.
Compared to the prior quarter, gross profit was substantially lower while cost of revenue was higher, leading to a much weaker gross margin. Year-over-year, revenue increased but gross profit decreased sharply, also pressuring the margin.
Monitor the trajectory of cost of revenue relative to revenue in future periods.