ConocoPhillips stock research
FY2024 Q3
ConocoPhillips (COP) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit both decreased compared to the immediately preceding quarter, while cost of revenue also declined but at a slower relative pace, causing gross margin to weaken. Versus the same quarter one year earlier, revenue was lower but gross profit held roughly stable as cost of revenue decreased more substantially, leading gross margin to improve.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit both decreased compared to the immediately preceding quarter, while cost of revenue also declined but at a slower relative pace, causing gross margin to weaken. Versus the same quarter one year earlier, revenue was lower but gross profit held roughly stable as cost of revenue decreased more substantially, leading gross margin to improve.
- The strongest observable margin driver in the current quarter is the lower cost of revenue compared to the prior year quarter, which supported gross profit even as revenue declined. This relative cost efficiency drove the year-over-year gross margin improvement.
- Compared to the immediately preceding quarter, gross margin weakened as revenue fell by a greater proportion than cost of revenue. Compared to the same quarter one year earlier, gross margin improved due to a larger decline in cost of revenue relative to revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.4%
Gross profit
$7.0B
Revenue
$11.7B
Cost of revenue
$4.7B
Quarter-over-quarter change
-2.2 pts
Year-over-year change
+3.4 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $12.9B | $7.3B | $5.7B | 56.1% |
| Mar 31, 2024 | $12.3B | $7.0B | $5.3B | 56.7% |
| Jun 30, 2024 | $12.7B | $7.8B | $4.9B | 61.6% |
| Sep 30, 2024 | $11.7B | $7.0B | $4.7B | 59.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-2.2 pts
Year-over-year change
Sep 30, 2023
+3.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver in the current quarter is the lower cost of revenue compared to the prior year quarter, which supported gross profit even as revenue declined. This relative cost efficiency drove the year-over-year gross margin improvement.
Compared to the immediately preceding quarter, gross margin weakened as revenue fell by a greater proportion than cost of revenue. Compared to the same quarter one year earlier, gross margin improved due to a larger decline in cost of revenue relative to revenue.
Monitor the trend in cost of revenue relative to revenue, as shifts in this relationship have driven both the sequential weakening and the year-over-year improvement in gross margin.