ONEOK, Inc. stock research
FY2023 Q2
ONEOK (OKE) Gross Margin — Quarter Ended Jun 30, 2023
Revenue was lower than both the prior quarter and the same quarter last year, while gross profit increased. Gross margin improved significantly, as cost of revenue declined more sharply than revenue.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue was lower than both the prior quarter and the same quarter last year, while gross profit increased. Gross margin improved significantly, as cost of revenue declined more sharply than revenue.
- The strongest observable driver is the proportionally larger decline in cost of revenue relative to revenue, which directly expanded gross margin.
- Compared to the prior quarter, gross margin improved from a lower level; compared to the same quarter last year, it strengthened from an even lower level. Revenue was lower in both comparisons, but gross profit was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.5%
Gross profit
$1.3B
Revenue
$3.7B
Cost of revenue
$2.5B
Quarter-over-quarter change
+7.5 pts
Year-over-year change
+14.8 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 | $4.5B | $1.2B | $3.3B | 26.0% |
| Jun 30, 2023 | $3.7B | $1.3B | $2.5B | 33.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+7.5 pts
Year-over-year change
Jun 30, 2022
+14.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the proportionally larger decline in cost of revenue relative to revenue, which directly expanded gross margin.
Compared to the prior quarter, gross margin improved from a lower level; compared to the same quarter last year, it strengthened from an even lower level. Revenue was lower in both comparisons, but gross profit was higher.
Monitor the sustainability of cost of revenue trends relative to revenue, and the company's expectation that earnings will remain largely fee-based as noted in the filing.