The Mosaic Company stock research
FY2023 Q1
The Mosaic (MOS) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined but at a slower pace relative to revenue. As a result, gross margin weakened sequentially and significantly versus the year-ago period.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined but at a slower pace relative to revenue. As a result, gross margin weakened sequentially and significantly versus the year-ago period.
- The decline in gross profit was proportionally larger than the decline in revenue, indicating that cost of revenue absorbed a greater share of sales. This compression in gross margin is the most observable driver of the quarter's profitability change.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue was lower, gross profit was substantially lower, and gross margin weakened markedly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
18.6%
Gross profit
$670.4M
Revenue
$3.6B
Cost of revenue
$2.9B
Quarter-over-quarter change
n/a
Year-over-year change
-18.1 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 | $3.6B | $670.4M | $2.9B | 18.6% |
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
-18.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross profit was proportionally larger than the decline in revenue, indicating that cost of revenue absorbed a greater share of sales. This compression in gross margin is the most observable driver of the quarter's profitability change.
Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened. Compared to the same quarter one year earlier, revenue was lower, gross profit was substantially lower, and gross margin weakened markedly.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess whether gross margin stabilizes or continues to weaken.