Occidental Petroleum Corporation stock research
FY2023 Q3
Occidental Petroleum (OXY) Gross Margin — Quarter Ended Sep 30, 2023
Revenue increased compared to the previous quarter but decreased year over year. Gross profit followed the same pattern, while cost of revenue declined both sequentially and annually, resulting in a gross margin that improved from the prior quarter but weakened from the prior year.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue increased compared to the previous quarter but decreased year over year. Gross profit followed the same pattern, while cost of revenue declined both sequentially and annually, resulting in a gross margin that improved from the prior quarter but weakened from the prior year.
- The most observable margin driver in the current quarter is the sequential improvement in gross margin, which accompanied a decrease in cost of revenue.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were higher, while cost of revenue was lower. Compared to the same quarter one year earlier, revenue and gross profit were lower and gross margin weakened slightly, while cost of revenue was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
90.6%
Gross profit
$6.6B
Revenue
$7.3B
Cost of revenue
$682.0M
Quarter-over-quarter change
+2.6 pts
Year-over-year change
-0.5 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 | $7.1B | $6.4B | $745.0M | 89.5% |
| Jun 30, 2023 | $6.6B | $5.8B | $791.0M | 88.0% |
| Sep 30, 2023 | $7.3B | $6.6B | $682.0M | 90.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+2.6 pts
Year-over-year change
Sep 30, 2022
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver in the current quarter is the sequential improvement in gross margin, which accompanied a decrease in cost of revenue.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were higher, while cost of revenue was lower. Compared to the same quarter one year earlier, revenue and gross profit were lower and gross margin weakened slightly, while cost of revenue was lower.
Monitor the trajectory of cost of revenue, which decreased both sequentially and year over year, as it affects gross margin.