Targa Resources Corp. stock research
FY2024 Q4
Targa Resources (TRGP) Gross Margin — Quarter Ended Dec 31, 2024
Revenue rose from both the prior quarter and the year-ago quarter, while gross profit increased relative to the year-ago quarter but held flat compared to the prior quarter. Gross margin weakened from the prior quarter but improved compared to the same quarter one year earlier, reflecting a mixed sequential and annual trend.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue rose from both the prior quarter and the year-ago quarter, while gross profit increased relative to the year-ago quarter but held flat compared to the prior quarter. Gross margin weakened from the prior quarter but improved compared to the same quarter one year earlier, reflecting a mixed sequential and annual trend.
- Cost of revenue increased more than revenue from the prior quarter, which compressed gross margin sequentially. Compared to the year-ago quarter, cost of revenue was stable while revenue was higher, allowing gross margin to improve.
- Sequentially, gross margin weakened as cost of revenue grew faster than revenue. Year-over-year, gross margin improved as revenue increased while cost of revenue was unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.7%
Gross profit
$1.5B
Revenue
$4.4B
Cost of revenue
$2.9B
Quarter-over-quarter change
-4.9 pts
Year-over-year change
+2.0 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2024 | $4.4B | $1.5B | $2.9B | 33.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-4.9 pts
Year-over-year change
Dec 31, 2023
+2.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Cost of revenue increased more than revenue from the prior quarter, which compressed gross margin sequentially. Compared to the year-ago quarter, cost of revenue was stable while revenue was higher, allowing gross margin to improve.
Sequentially, gross margin weakened as cost of revenue grew faster than revenue. Year-over-year, gross margin improved as revenue increased while cost of revenue was unchanged.
Monitor the relationship between cost of revenue and revenue trends, as cost growth outpaced revenue sequentially and constrained margin.