OX

Occidental Petroleum Corporation stock research

Jun 30, 2023

FY2023 Q2

Occidental Petroleum (OXY) Gross Margin — Quarter Ended Jun 30, 2023

Revenue decreased compared to the prior quarter and the same quarter last year. Gross margin weakened as cost of revenue declined less than revenue.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q2

Revenue decreased compared to the prior quarter and the same quarter last year. Gross margin weakened as cost of revenue declined less than revenue.

  • The change in gross margin was primarily driven by the relationship between revenue and cost of revenue, with revenue decreasing while cost of revenue remained relatively stable.
  • Compared to the prior quarter, gross margin was lower, and it was also lower than the same quarter one year earlier.

Gross margin snapshot

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

Gross margin

88.0%

Gross profit

$5.8B

Revenue

$6.6B

Cost of revenue

$791.0M

Quarter-over-quarter change

-1.5 pts

Year-over-year change

-3.9 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$7.1B$6.4B$745.0M89.5%
Jun 30, 2023$6.6B$5.8B$791.0M88.0%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2023

-1.5 pts

Year-over-year change

Jun 30, 2022

-3.9 pts

What the margin says

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

The change in gross margin was primarily driven by the relationship between revenue and cost of revenue, with revenue decreasing while cost of revenue remained relatively stable.

Compared to the prior quarter, gross margin was lower, and it was also lower than the same quarter one year earlier.

Monitor the trend in cost of revenue relative to revenue in upcoming periods.

OXY Gross Margin — Quarter Ended Jun 30, 2023