Albemarle Corporation stock research
FY2024 Q2
Albemarle (ALB) Gross Margin — Quarter Ended Jun 30, 2024
Revenue was stable compared to the prior quarter, but gross profit turned negative as cost of revenue rose relative to sales. Gross margin weakened sharply from the previous quarter and was substantially lower than the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue was stable compared to the prior quarter, but gross profit turned negative as cost of revenue rose relative to sales. Gross margin weakened sharply from the previous quarter and was substantially lower than the same quarter one year earlier.
- The most observable driver was the increase in cost of revenue relative to revenue, which pushed gross profit from positive to negative. This shift was the primary factor behind the decline in gross margin.
- Compared to the immediately preceding quarter, gross margin declined from positive to negative, reflecting a higher cost of revenue relative to revenue. Versus the same quarter one year earlier, gross margin was substantially lower, as revenue decreased while cost of revenue fell by a smaller proportion.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
-0.7%
Gross profit
-$10.6M
Revenue
$1.4B
Cost of revenue
$1.4B
Quarter-over-quarter change
-3.6 pts
Year-over-year change
-24.3 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 | $2.3B | $54.9M | $2.3B | 2.4% |
| Dec 31, 2023 | $2.4B | -$704.1M | $3.1B | -29.9% |
| Mar 31, 2024 | $1.4B | $38.9M | $1.3B | 2.9% |
| Jun 30, 2024 | $1.4B | -$10.6M | $1.4B | -0.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-3.6 pts
Year-over-year change
Jun 30, 2023
-24.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver was the increase in cost of revenue relative to revenue, which pushed gross profit from positive to negative. This shift was the primary factor behind the decline in gross margin.
Compared to the immediately preceding quarter, gross margin declined from positive to negative, reflecting a higher cost of revenue relative to revenue. Versus the same quarter one year earlier, gross margin was substantially lower, as revenue decreased while cost of revenue fell by a smaller proportion.
Monitor the trajectory of cost of revenue relative to revenue, as its increase was the primary factor behind the negative gross margin.