CF Industries Holdings, Inc. stock research
FY2023 Q2
CF Industries Holdings (CF) Gross Margin — Quarter Ended Jun 30, 2023
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 sequentially but weakened significantly from the year-ago period.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
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 sequentially but weakened significantly from the year-ago period.
- The sequential improvement in gross margin was driven by a proportionally larger decline in cost of revenue relative to revenue. The year-over-year weakening reflects a sharper drop in gross profit compared to the reduction in revenue.
- Compared to the immediately preceding quarter, revenue was lower, cost of revenue was lower, gross profit was lower, and gross margin was higher. Compared to the same quarter one year earlier, all metrics were lower, with gross margin substantially lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
45.3%
Gross profit
$804.0M
Revenue
$1.8B
Cost of revenue
$971.0M
Quarter-over-quarter change
+2.4 pts
Year-over-year change
-13.5 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 | $2.0B | $863.0M | $1.1B | 42.9% |
| Jun 30, 2023 | $1.8B | $804.0M | $971.0M | 45.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+2.4 pts
Year-over-year change
Jun 30, 2022
-13.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was driven by a proportionally larger decline in cost of revenue relative to revenue. The year-over-year weakening reflects a sharper drop in gross profit compared to the reduction in revenue.
Compared to the immediately preceding quarter, revenue was lower, cost of revenue was lower, gross profit was lower, and gross margin was higher. Compared to the same quarter one year earlier, all metrics were lower, with gross margin substantially lower.
Monitor the trajectory of cost of revenue relative to revenue, as the margin improvement was tied to cost reductions rather than revenue growth.