ONEOK, Inc. stock research
FY2024 Q3
ONEOK (OKE) Gross Margin — Quarter Ended Sep 30, 2024
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit was stable sequentially but higher year-over-year, while cost of revenue rose in both comparisons, resulting in a gross margin that improved from the prior year but weakened from the prior quarter.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit was stable sequentially but higher year-over-year, while cost of revenue rose in both comparisons, resulting in a gross margin that improved from the prior year but weakened from the prior quarter.
- The strongest observable driver is the change in cost of revenue relative to revenue. Year-over-year, cost grew slower than revenue, expanding margin; sequentially, cost grew faster than revenue, compressing margin.
- Compared to the prior quarter, gross margin weakened as cost of revenue increased proportionally more than revenue. Compared to the same quarter last year, gross margin improved significantly as revenue grew faster than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
39.7%
Gross profit
$2.0B
Revenue
$5.0B
Cost of revenue
$3.0B
Quarter-over-quarter change
-1.2 pts
Year-over-year change
+6.6 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $5.2B | $1.9B | $3.3B | 36.9% |
| Mar 31, 2024 | $4.8B | $1.9B | $2.9B | 39.4% |
| Jun 30, 2024 | $4.9B | $2.0B | $2.9B | 40.9% |
| Sep 30, 2024 | $5.0B | $2.0B | $3.0B | 39.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-1.2 pts
Year-over-year change
Sep 30, 2023
+6.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the change in cost of revenue relative to revenue. Year-over-year, cost grew slower than revenue, expanding margin; sequentially, cost grew faster than revenue, compressing margin.
Compared to the prior quarter, gross margin weakened as cost of revenue increased proportionally more than revenue. Compared to the same quarter last year, gross margin improved significantly as revenue grew faster than cost of revenue.
Monitor the financial impact of the EnLink acquisition completed after the quarter end, as described in the filing.