Targa Resources Corp. stock research
FY2023 Q3
Targa Resources (TRGP) Gross Margin — Quarter Ended Sep 30, 2023
Revenue, gross profit, and gross margin all improved compared to the prior quarter and the same quarter last year. Cost of revenue rose from the prior quarter but was lower than a year ago, contributing to the gross margin expansion.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue, gross profit, and gross margin all improved compared to the prior quarter and the same quarter last year. Cost of revenue rose from the prior quarter but was lower than a year ago, contributing to the gross margin expansion.
- Gross profit increased more than proportionally relative to revenue compared to both the prior quarter and the year-ago quarter, resulting in a higher gross margin.
- Gross margin was higher than both the immediately preceding quarter and the same quarter one year earlier. Revenue and gross profit were higher sequentially but lower than a year ago, while cost of revenue increased from the prior quarter and decreased from the year-ago period.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.0%
Gross profit
$1.2B
Revenue
$3.9B
Cost of revenue
$2.7B
Quarter-over-quarter change
+7.0 pts
Year-over-year change
+16.3 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 |
|---|---|---|---|---|
| Mar 31, 2023 | $3.8B | $782.8M | $3.0B | 20.6% |
| Jun 30, 2023 | $2.7B | $650.7M | $2.1B | 23.9% |
| Sep 30, 2023 | $3.9B | $1.2B | $2.7B | 31.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+7.0 pts
Year-over-year change
Sep 30, 2022
+16.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit increased more than proportionally relative to revenue compared to both the prior quarter and the year-ago quarter, resulting in a higher gross margin.
Gross margin was higher than both the immediately preceding quarter and the same quarter one year earlier. Revenue and gross profit were higher sequentially but lower than a year ago, while cost of revenue increased from the prior quarter and decreased from the year-ago period.
Monitor the trajectory of cost of revenue relative to revenue, as its changes have a direct impact on gross margin.