Phillips 66 stock research
FY2024 Q3
Phillips 66 (PSX) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit both declined compared to the prior quarter and the same quarter last year. Gross margin improved slightly from the prior quarter but was lower than a year ago.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit both declined compared to the prior quarter and the same quarter last year. Gross margin improved slightly from the prior quarter but was lower than a year ago.
- The gross margin movement was influenced by changes in cost of revenue relative to revenue. Compared to the prior quarter, cost of revenue fell faster than revenue, lifting the margin; compared to last year, the margin contracted as gross profit dropped more sharply than revenue.
- Revenue and gross profit were lower than both the previous quarter and the year-ago quarter. Gross margin improved modestly from the prior quarter but weakened compared to the same period last year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
9.4%
Gross profit
$3.3B
Revenue
$35.5B
Cost of revenue
$32.2B
Quarter-over-quarter change
+0.2 pts
Year-over-year change
-4.0 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 | $38.3B | $4.4B | $33.8B | 11.6% |
| Mar 31, 2024 | $35.8B | $3.4B | $32.4B | 9.6% |
| Jun 30, 2024 | $38.1B | $3.5B | $34.6B | 9.2% |
| Sep 30, 2024 | $35.5B | $3.3B | $32.2B | 9.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.2 pts
Year-over-year change
Sep 30, 2023
-4.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin movement was influenced by changes in cost of revenue relative to revenue. Compared to the prior quarter, cost of revenue fell faster than revenue, lifting the margin; compared to last year, the margin contracted as gross profit dropped more sharply than revenue.
Revenue and gross profit were lower than both the previous quarter and the year-ago quarter. Gross margin improved modestly from the prior quarter but weakened compared to the same period last year.
The cost of purchased crude oil and products, highlighted in the filing as a major cost component, is a key item to monitor for margin trends.