PS

Phillips 66 stock research

Jun 30, 2024

FY2024 Q2

Phillips 66 (PSX) Gross Margin — Quarter Ended Jun 30, 2024

Revenue increased compared to both the prior quarter and the same quarter last year, but gross profit was higher than the prior quarter and lower than the year-ago period. Gross margin declined sequentially and year-over-year.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue increased compared to both the prior quarter and the same quarter last year, but gross profit was higher than the prior quarter and lower than the year-ago period. Gross margin declined sequentially and year-over-year.

  • Revenue growth was accompanied by a proportionally larger increase in cost of revenue, which compressed the gross margin.
  • Compared to the prior quarter, both revenue and cost of revenue rose, but gross margin narrowed. Compared to the same quarter last year, revenue increased while gross profit declined, resulting in a weaker gross margin.

Gross margin snapshot

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

Gross margin

9.2%

Gross profit

$3.5B

Revenue

$38.1B

Cost of revenue

$34.6B

Quarter-over-quarter change

-0.4 pts

Year-over-year change

-3.7 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$39.6B$5.3B$34.3B13.4%
Dec 31, 2023$38.3B$4.4B$33.8B11.6%
Mar 31, 2024$35.8B$3.4B$32.4B9.6%
Jun 30, 2024$38.1B$3.5B$34.6B9.2%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2024

-0.4 pts

Year-over-year change

Jun 30, 2023

-3.7 pts

What the margin says

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

Revenue growth was accompanied by a proportionally larger increase in cost of revenue, which compressed the gross margin.

Compared to the prior quarter, both revenue and cost of revenue rose, but gross margin narrowed. Compared to the same quarter last year, revenue increased while gross profit declined, resulting in a weaker gross margin.

Monitor the relationship between cost of revenue and revenue growth in upcoming quarters.