Targa Resources Corp. stock research
FY2024 Q2
Targa Resources (TRGP) Gross Margin — Quarter Ended Jun 30, 2024
Revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross profit rose relative to both periods, while cost of revenue declined from the prior quarter and was slightly higher than a year ago, resulting in a gross margin that improved sequentially and year-over-year.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue decreased from the prior quarter but increased compared to the same quarter last year. Gross profit rose relative to both periods, while cost of revenue declined from the prior quarter and was slightly higher than a year ago, resulting in a gross margin that improved sequentially and year-over-year.
- The gross margin strengthened compared to both the immediately preceding quarter and the same quarter one year earlier, driven by a larger increase in gross profit relative to the change in revenue.
- Compared to the prior quarter, revenue was lower but gross profit was higher, and cost of revenue was lower, leading to an improved gross margin. Versus the same quarter last year, revenue, gross profit, and cost of revenue were all higher, with gross profit rising more than revenue, resulting in a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.3%
Gross profit
$1.4B
Revenue
$3.6B
Cost of revenue
$2.2B
Quarter-over-quarter change
+8.8 pts
Year-over-year change
+14.4 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $3.9B | $1.2B | $2.7B | 31.0% |
| Dec 31, 2023 | $4.2B | $1.3B | $2.9B | 31.6% |
| Mar 31, 2024 | $4.6B | $1.3B | $3.2B | 29.5% |
| Jun 30, 2024 | $3.6B | $1.4B | $2.2B | 38.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+8.8 pts
Year-over-year change
Jun 30, 2023
+14.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened compared to both the immediately preceding quarter and the same quarter one year earlier, driven by a larger increase in gross profit relative to the change in revenue.
Compared to the prior quarter, revenue was lower but gross profit was higher, and cost of revenue was lower, leading to an improved gross margin. Versus the same quarter last year, revenue, gross profit, and cost of revenue were all higher, with gross profit rising more than revenue, resulting in a higher gross margin.
Monitor the trajectory of cost of revenue relative to revenue, as its decline from the prior quarter contributed to the margin improvement.