CF Industries Holdings, Inc. stock research
FY2024 Q4
CF Industries Holdings (CF) Gross Margin — Quarter Ended Dec 31, 2024
Revenue increased compared to the previous quarter but decreased compared to the same quarter last year. Gross profit rose in both comparisons, and cost of revenue followed a similar pattern, leading to a higher gross margin than both prior periods.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue increased compared to the previous quarter but decreased compared to the same quarter last year. Gross profit rose in both comparisons, and cost of revenue followed a similar pattern, leading to a higher gross margin than both prior periods.
- The gross margin improved sequentially and year-over-year. This was primarily due to gross profit increasing more than revenue on a sequential basis, and gross profit rising even as revenue declined compared to the year-ago period.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was lower, but gross profit and gross margin were higher, while cost of revenue was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
34.4%
Gross profit
$524.0M
Revenue
$1.5B
Cost of revenue
$1.0B
Quarter-over-quarter change
+2.0 pts
Year-over-year change
+2.5 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, 2024 | $1.5B | $409.0M | $1.1B | 27.8% |
| Jun 30, 2024 | $1.6B | $679.0M | $893.0M | 43.2% |
| Sep 30, 2024 | $1.4B | $444.0M | $926.0M | 32.4% |
| Dec 31, 2024 | $1.5B | $524.0M | $1.0B | 34.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+2.0 pts
Year-over-year change
Dec 31, 2023
+2.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially and year-over-year. This was primarily due to gross profit increasing more than revenue on a sequential basis, and gross profit rising even as revenue declined compared to the year-ago period.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were all higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was lower, but gross profit and gross margin were higher, while cost of revenue was lower.
Monitor the relative movement of cost of revenue compared to revenue in upcoming quarters.