OK

ONEOK, Inc. stock research

Sep 30, 2023

FY2023 Q3

ONEOK (OKE) Gross Margin — Quarter Ended Sep 30, 2023

Revenue decreased compared to the same quarter last year but increased from the previous quarter. Gross profit rose both year-over-year and sequentially, while cost of revenue fell year-over-year but rose sequentially; consequently, gross margin improved sharply from the prior year but weakened slightly from the preceding quarter.

Gross margin takeaway

Quarter ended Sep 30, 2023 · FY2023 Q3

Revenue decreased compared to the same quarter last year but increased from the previous quarter. Gross profit rose both year-over-year and sequentially, while cost of revenue fell year-over-year but rose sequentially; consequently, gross margin improved sharply from the prior year but weakened slightly from the preceding quarter.

  • Compared to the prior year, gross profit increased while cost of revenue decreased, resulting in a higher gross margin.
  • Revenue was lower than the same quarter last year but higher than the preceding quarter. Gross margin improved significantly from the prior year but was slightly lower than the previous quarter.

Gross margin snapshot

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

Gross margin

33.2%

Gross profit

$1.4B

Revenue

$4.2B

Cost of revenue

$2.8B

Quarter-over-quarter change

-0.3 pts

Year-over-year change

+13.9 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$4.5B$1.2B$3.3B26.0%
Jun 30, 2023$3.7B$1.3B$2.5B33.5%
Sep 30, 2023$4.2B$1.4B$2.8B33.2%

Quarterly comparisons

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

Previous-quarter change

Jun 30, 2023

-0.3 pts

Year-over-year change

Sep 30, 2022

+13.9 pts

What the margin says

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

Compared to the prior year, gross profit increased while cost of revenue decreased, resulting in a higher gross margin.

Revenue was lower than the same quarter last year but higher than the preceding quarter. Gross margin improved significantly from the prior year but was slightly lower than the previous quarter.

The integration and financial impact of the recently completed Magellan acquisition should be monitored.

OKE Gross Margin — Quarter Ended Sep 30, 2023