Targa Resources Corp. stock research
FY2024 Q3
Targa Resources (TRGP) Gross Margin — Quarter Ended Sep 30, 2024
Revenue grew relative to the prior quarter and held steady compared to the year-ago period. Gross profit improved both sequentially and annually, driven by a lower cost of revenue year-over-year, leading to a higher gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue grew relative to the prior quarter and held steady compared to the year-ago period. Gross profit improved both sequentially and annually, driven by a lower cost of revenue year-over-year, leading to a higher gross margin.
- The most significant factor driving the margin improvement is the decline in cost of revenue compared to the same quarter last year, which allowed gross profit to rise despite flat revenue.
- Compared to the preceding quarter, revenue and gross profit both increased, while cost of revenue also rose, resulting in a slightly higher gross margin. Relative to the same quarter one year earlier, revenue was similar but gross profit was higher and cost of revenue lower, yielding a markedly improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
38.6%
Gross profit
$1.5B
Revenue
$3.9B
Cost of revenue
$2.4B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+7.6 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 | $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% |
| Sep 30, 2024 | $3.9B | $1.5B | $2.4B | 38.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.3 pts
Year-over-year change
Sep 30, 2023
+7.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most significant factor driving the margin improvement is the decline in cost of revenue compared to the same quarter last year, which allowed gross profit to rise despite flat revenue.
Compared to the preceding quarter, revenue and gross profit both increased, while cost of revenue also rose, resulting in a slightly higher gross margin. Relative to the same quarter one year earlier, revenue was similar but gross profit was higher and cost of revenue lower, yielding a markedly improved gross margin.
The filing highlights that liquidity and capital resources depend on cash generation, which is subject to commodity prices and cost management efforts.