Occidental Petroleum Corporation stock research
FY2024 Q3
Occidental Petroleum (OXY) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit increased from the prior quarter but decreased from the same quarter last year. Gross margin improved sequentially but weakened compared to the year-ago period, reflecting a mixed performance.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit increased from the prior quarter but decreased from the same quarter last year. Gross margin improved sequentially but weakened compared to the year-ago period, reflecting a mixed performance.
- The sequential improvement in gross margin was supported by a lower cost of revenue relative to revenue. However, the year-over-year decline in margin was driven by a higher cost of revenue despite lower revenue.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was lower. Compared to the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was higher, and gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
87.3%
Gross profit
$6.1B
Revenue
$7.0B
Cost of revenue
$889.0M
Quarter-over-quarter change
+0.7 pts
Year-over-year change
-3.3 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 | $2.2B | $1.3B | $898.0M | 60.0% |
| Mar 31, 2024 | $6.7B | $5.9B | $828.0M | 87.7% |
| Jun 30, 2024 | $6.8B | $5.9B | $910.0M | 86.6% |
| Sep 30, 2024 | $7.0B | $6.1B | $889.0M | 87.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.7 pts
Year-over-year change
Sep 30, 2023
-3.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was supported by a lower cost of revenue relative to revenue. However, the year-over-year decline in margin was driven by a higher cost of revenue despite lower revenue.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue was lower. Compared to the same quarter one year earlier, revenue and gross profit were lower, cost of revenue was higher, and gross margin weakened.
Monitor the trend in cost of revenue, as it increased year-over-year while revenue declined, pressuring margins.