FC

Freeport-McMoRan Inc. stock research

Mar 31, 2023

FY2023 Q1

Freeport-McMoRan (FCX) Gross Margin — Quarter Ended Mar 31, 2023

Revenue was lower than the prior quarter, while gross profit was higher and cost of revenue was lower, resulting in an improved gross margin. Compared to the same quarter last year, revenue and gross profit were both substantially lower, cost of revenue was about the same, leading to a weakened gross margin.

Gross margin takeaway

Quarter ended Mar 31, 2023 · FY2023 Q1

Revenue was lower than the prior quarter, while gross profit was higher and cost of revenue was lower, resulting in an improved gross margin. Compared to the same quarter last year, revenue and gross profit were both substantially lower, cost of revenue was about the same, leading to a weakened gross margin.

  • The strongest observable margin driver is the reduction in cost of revenue relative to revenue compared to the previous quarter, which lifted gross margin.
  • Gross margin improved sequentially from the prior quarter but weakened significantly compared to the same quarter last year.

Gross margin snapshot

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

Gross margin

30.3%

Gross profit

$1.6B

Revenue

$5.1B

Cost of revenue

$3.6B

Quarter-over-quarter change

n/a

Year-over-year change

-12.5 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$5.1B$1.6B$3.6B30.3%

Quarterly comparisons

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

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Mar 31, 2022

-12.5 pts

What the margin says

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

The strongest observable margin driver is the reduction in cost of revenue relative to revenue compared to the previous quarter, which lifted gross margin.

Gross margin improved sequentially from the prior quarter but weakened significantly compared to the same quarter last year.

Monitor whether the cost of revenue can be maintained at the current level relative to revenue in future periods.