Freeport-McMoRan Inc. stock research
FY2023 Q4
Freeport-McMoRan (FCX) Gross Margin — Quarter Ended Dec 31, 2023
Revenue was slightly lower sequentially while cost of revenue decreased more, resulting in a higher gross profit and an improved gross margin. Compared to the same quarter last year, revenue and gross profit both increased while cost of revenue decreased, leading to a stronger gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue was slightly lower sequentially while cost of revenue decreased more, resulting in a higher gross profit and an improved gross margin. Compared to the same quarter last year, revenue and gross profit both increased while cost of revenue decreased, leading to a stronger gross margin.
- The gross margin improvement was driven by a larger decline in cost of revenue relative to the change in revenue, both sequentially and year-over-year.
- Relative to the prior quarter, gross margin improved as cost of revenue decreased while revenue was nearly stable. Compared to the same quarter a year ago, gross margin strengthened significantly with higher revenue and lower cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.9%
Gross profit
$1.8B
Revenue
$5.8B
Cost of revenue
$3.9B
Quarter-over-quarter change
+1.5 pts
Year-over-year change
+6.0 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% |
| Sep 30, 2023 | $5.9B | $1.8B | $4.1B | 30.3% |
| Dec 31, 2023 | $5.8B | $1.8B | $3.9B | 31.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+1.5 pts
Year-over-year change
Dec 31, 2022
+6.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by a larger decline in cost of revenue relative to the change in revenue, both sequentially and year-over-year.
Relative to the prior quarter, gross margin improved as cost of revenue decreased while revenue was nearly stable. Compared to the same quarter a year ago, gross margin strengthened significantly with higher revenue and lower cost of revenue.
Monitor cost of revenue trends, as its movement relative to revenue has been the primary factor in gross margin changes.