OK

ONEOK, Inc. stock research

Jun 30, 2024

FY2024 Q2

ONEOK (OKE) Gross Margin — Quarter Ended Jun 30, 2024

Revenue was higher than the prior quarter and the same quarter last year. Gross profit also improved, while cost of revenue held steady versus the prior quarter and was lower than the year-ago period, resulting in gross margin that strengthened both sequentially and year over year.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue was higher than the prior quarter and the same quarter last year. Gross profit also improved, while cost of revenue held steady versus the prior quarter and was lower than the year-ago period, resulting in gross margin that strengthened both sequentially and year over year.

  • The strongest observable margin driver is the combination of higher revenue and stable or lower cost of revenue, which directly lifted gross margin.
  • Compared to the prior quarter, revenue rose slightly and gross profit increased, while gross margin improved. Versus the same quarter one year earlier, revenue and gross profit were substantially higher, and gross margin showed a significant improvement.

Gross margin snapshot

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

Gross margin

40.9%

Gross profit

$2.0B

Revenue

$4.9B

Cost of revenue

$2.9B

Quarter-over-quarter change

+1.5 pts

Year-over-year change

+7.4 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$4.2B$1.4B$2.8B33.2%
Dec 31, 2023$5.2B$1.9B$3.3B36.9%
Mar 31, 2024$4.8B$1.9B$2.9B39.4%
Jun 30, 2024$4.9B$2.0B$2.9B40.9%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2024

+1.5 pts

Year-over-year change

Jun 30, 2023

+7.4 pts

What the margin says

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

The strongest observable margin driver is the combination of higher revenue and stable or lower cost of revenue, which directly lifted gross margin.

Compared to the prior quarter, revenue rose slightly and gross profit increased, while gross margin improved. Versus the same quarter one year earlier, revenue and gross profit were substantially higher, and gross margin showed a significant improvement.

Monitor the trend in cost of revenue, as it remained stable this quarter despite higher revenue; any future increase could pressure gross margin.