CF

CF Industries Holdings, Inc. stock research

Sep 30, 2024

FY2024 Q3

CF Industries Holdings (CF) Gross Margin — Quarter Ended Sep 30, 2024

Revenue less cost of revenue produced a gross profit that was lower than the prior quarter but higher than the same quarter a year earlier. The resulting gross margin weakened sequentially while improving from the year-earlier period.

Gross margin takeaway

Quarter ended Sep 30, 2024 · FY2024 Q3

Revenue less cost of revenue produced a gross profit that was lower than the prior quarter but higher than the same quarter a year earlier. The resulting gross margin weakened sequentially while improving from the year-earlier period.

  • The margin was most affected by the combination of a lower revenue base and a higher cost of revenue compared with the immediately preceding quarter.
  • Compared with the prior quarter, the gross margin was lower as revenue declined while cost of revenue increased. Compared with the same quarter one year ago, the gross margin was higher as revenue grew more than cost of revenue.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

32.4%

Gross profit

$444.0M

Revenue

$1.4B

Cost of revenue

$926.0M

Quarter-over-quarter change

-10.8 pts

Year-over-year change

+2.8 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2023$1.6B$501.0M$1.1B31.9%
Mar 31, 2024$1.5B$409.0M$1.1B27.8%
Jun 30, 2024$1.6B$679.0M$893.0M43.2%
Sep 30, 2024$1.4B$444.0M$926.0M32.4%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2024

-10.8 pts

Year-over-year change

Sep 30, 2023

+2.8 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The margin was most affected by the combination of a lower revenue base and a higher cost of revenue compared with the immediately preceding quarter.

Compared with the prior quarter, the gross margin was lower as revenue declined while cost of revenue increased. Compared with the same quarter one year ago, the gross margin was higher as revenue grew more than cost of revenue.

Natural gas price trends, a risk factor cited in the company's filings, are a key item to monitor.