FC

Freeport-McMoRan Inc. stock research

Sep 30, 2023

FY2023 Q3

Freeport-McMoRan (FCX) Gross Margin — Quarter Ended Sep 30, 2023

In the third quarter of fiscal 2023, revenue and cost of revenue were similar to the prior quarter, resulting in a gross margin that was slightly lower. Compared to the same quarter a year earlier, both revenue and gross profit were higher, and gross margin improved.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q3

In the third quarter of fiscal 2023, revenue and cost of revenue were similar to the prior quarter, resulting in a gross margin that was slightly lower. Compared to the same quarter a year earlier, both revenue and gross profit were higher, and gross margin improved.

  • The year-over-year gross margin improvement is associated with a higher increase in revenue than in cost of revenue.
  • Sequentially, gross margin weakened slightly from the previous quarter, while year-over-year, gross margin strengthened.

Gross margin snapshot

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

Gross margin

30.3%

Gross profit

$1.8B

Revenue

$5.9B

Cost of revenue

$4.1B

Quarter-over-quarter change

-0.6 pts

Year-over-year change

+3.8 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$5.1B$1.6B$3.6B30.3%
Jun 30, 2023$5.9B$1.8B$4.1B30.9%
Sep 30, 2023$5.9B$1.8B$4.1B30.3%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2023

-0.6 pts

Year-over-year change

Sep 30, 2022

+3.8 pts

What the margin says

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

The year-over-year gross margin improvement is associated with a higher increase in revenue than in cost of revenue.

Sequentially, gross margin weakened slightly from the previous quarter, while year-over-year, gross margin strengthened.

Monitor the relationship between revenue growth and cost of revenue changes.