Albemarle Corporation stock research
FY2023 Q4
Albemarle (ALB) Gross Margin — Quarter Ended Dec 31, 2023
Revenue was higher than the prior quarter but lower than the same quarter a year earlier. Gross profit turned negative, cost of revenue increased, and gross margin weakened significantly compared to both periods.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue was higher than the prior quarter but lower than the same quarter a year earlier. Gross profit turned negative, cost of revenue increased, and gross margin weakened significantly compared to both periods.
- The most observable driver is the sharp decline in gross profit relative to revenue, as cost of revenue rose while revenue increased only modestly from the prior quarter.
- Compared to the prior quarter, gross margin weakened from positive to negative. Compared to the same quarter a year earlier, gross margin also weakened substantially, as revenue was lower and cost of revenue was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
-29.9%
Gross profit
-$704.1M
Revenue
$2.4B
Cost of revenue
$3.1B
Quarter-over-quarter change
-32.3 pts
Year-over-year change
-68.1 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% |
| Dec 31, 2023 | $2.4B | -$704.1M | $3.1B | -29.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-32.3 pts
Year-over-year change
Dec 31, 2022
-68.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver is the sharp decline in gross profit relative to revenue, as cost of revenue rose while revenue increased only modestly from the prior quarter.
Compared to the prior quarter, gross margin weakened from positive to negative. Compared to the same quarter a year earlier, gross margin also weakened substantially, as revenue was lower and cost of revenue was higher.
Monitor the trajectory of cost of revenue relative to revenue, as it exceeded revenue in the current quarter.