Occidental Petroleum Corporation stock research
FY2024 Q1
Occidental Petroleum (OXY) Gross Margin — Quarter Ended Mar 31, 2024
Revenue, gross profit, and gross margin all weakened compared to both the preceding quarter and the same quarter one year ago. The decline in gross margin was driven by a lower proportion of revenue being retained as gross profit, as cost of revenue fell less sharply than revenue.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue, gross profit, and gross margin all weakened compared to both the preceding quarter and the same quarter one year ago. The decline in gross margin was driven by a lower proportion of revenue being retained as gross profit, as cost of revenue fell less sharply than revenue.
- The strongest observable driver was the relative stability of cost of revenue, which was lower sequentially but only slightly reduced from the prior year, while revenue varied more significantly. This caused gross profit to contract at a faster rate than revenue, pressuring the gross margin.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin improved substantially from a lower base. Versus the same quarter one year earlier, all three metrics were lower, with gross margin also lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
87.7%
Gross profit
$5.9B
Revenue
$6.7B
Cost of revenue
$828.0M
Quarter-over-quarter change
+27.7 pts
Year-over-year change
-1.8 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 |
|---|---|---|---|---|
| Jun 30, 2023 | $6.6B | $5.8B | $791.0M | 88.0% |
| Sep 30, 2023 | $7.3B | $6.6B | $682.0M | 90.6% |
| Dec 31, 2023 | $2.2B | $1.3B | $898.0M | 60.0% |
| Mar 31, 2024 | $6.7B | $5.9B | $828.0M | 87.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+27.7 pts
Year-over-year change
Mar 31, 2023
-1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver was the relative stability of cost of revenue, which was lower sequentially but only slightly reduced from the prior year, while revenue varied more significantly. This caused gross profit to contract at a faster rate than revenue, pressuring the gross margin.
Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin improved substantially from a lower base. Versus the same quarter one year earlier, all three metrics were lower, with gross margin also lower.
Monitor the trajectory of cost of revenue relative to revenue, as a less proportionate decline in cost of revenue would further pressure gross margin.