CF Industries Holdings, Inc. stock research
FY2024 Q1
CF Industries Holdings (CF) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue remained stable. Consequently, gross margin weakened sequentially and year-over-year.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue remained stable. Consequently, gross margin weakened sequentially and year-over-year.
- The decline in gross margin was driven by a lower gross profit relative to revenue, as cost of revenue did not change materially.
- Compared to the immediately preceding quarter, gross margin was lower; compared to the same quarter one year earlier, gross margin was also lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
27.8%
Gross profit
$409.0M
Revenue
$1.5B
Cost of revenue
$1.1B
Quarter-over-quarter change
-4.1 pts
Year-over-year change
-15.1 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $1.8B | $804.0M | $971.0M | 45.3% |
| Sep 30, 2023 | $1.3B | $377.0M | $896.0M | 29.6% |
| Dec 31, 2023 | $1.6B | $501.0M | $1.1B | 31.9% |
| Mar 31, 2024 | $1.5B | $409.0M | $1.1B | 27.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-4.1 pts
Year-over-year change
Mar 31, 2023
-15.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross margin was driven by a lower gross profit relative to revenue, as cost of revenue did not change materially.
Compared to the immediately preceding quarter, gross margin was lower; compared to the same quarter one year earlier, gross margin was also lower.
Monitor the trajectory of revenue relative to cost of revenue, as gross margin compression has persisted across both comparisons.