Freeport-McMoRan Inc. stock research
FY2023 Q2
Freeport-McMoRan (FCX) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit for the quarter were higher than the prior quarter but lower than the same quarter last year. Gross margin improved slightly from the preceding quarter but weakened considerably compared to the year-ago period.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit for the quarter were higher than the prior quarter but lower than the same quarter last year. Gross margin improved slightly from the preceding quarter but weakened considerably compared to the year-ago period.
- The relationship between revenue and cost of revenue drove the margin change. Sequentially, revenue grew faster than cost of revenue, yielding a small margin improvement; year-over-year, cost of revenue rose while revenue fell, compressing margin.
- Compared to the preceding quarter, revenue and gross profit were both higher and gross margin improved modestly. Compared to the same quarter one year earlier, revenue and gross profit were lower and gross margin weakened significantly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
30.9%
Gross profit
$1.8B
Revenue
$5.9B
Cost of revenue
$4.1B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
-11.9 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, 2023 | $5.1B | $1.6B | $3.6B | 30.3% |
| Jun 30, 2023 | $5.9B | $1.8B | $4.1B | 30.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+0.6 pts
Year-over-year change
Jun 30, 2022
-11.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue drove the margin change. Sequentially, revenue grew faster than cost of revenue, yielding a small margin improvement; year-over-year, cost of revenue rose while revenue fell, compressing margin.
Compared to the preceding quarter, revenue and gross profit were both higher and gross margin improved modestly. Compared to the same quarter one year earlier, revenue and gross profit were lower and gross margin weakened significantly.
Monitor the trend of cost of revenue relative to revenue, as its increase has outpaced revenue on a year-over-year basis.