Occidental Petroleum Set to Report Q4 Earnings Amid Mixed Performance
Occidental Petroleum Corporation (OXY), based in Houston, Texas, is involved in the acquisition, exploration, and development of oil and gas properties. With a market capitalization of $48.8 billion, the company also produces and sells a range of basic chemicals, vinyls, and performance chemicals. Investors are eagerly awaiting the fiscal fourth-quarter earnings report, scheduled to be released after the market closes on Tuesday, February 18.
Analysts Predict Softer Earnings Ahead
Analysts project that OXY will post a profit of $0.65 per share on a diluted basis, representing a decline of 12.2% from $0.74 per share in the same quarter last year. Notably, the company has either met or exceeded Wall Street’s earnings-per-share (EPS) estimates in its last four quarters.
Overall Annual Earnings Expected to Drop
For the full fiscal year, EPS is expected to be $3.32, down 10.3% from $3.70 in fiscal 2023. Looking ahead, analysts foresee a further decline, projecting EPS of $3.14 for fiscal 2025, indicating a year-over-year decrease of 5.4%.
Stock Performance Lagging Behind Major Indices
Over the past year, OXY stock has struggled, underperforming the S&P 500’s ($SPX) 25% gains with a 10.4% decline. The Energy Select Sector SPDR Fund (XLE) has also outperformed OXY, rising by 16.6% in the same period.
Challenges Facing the Company
The recent decline in OXY’s performance is largely attributed to its acquisition of CrownRock and a drop in oil prices. In response to rising debt levels, the company has sold off non-core assets, including its interest in Western Midstream. Additionally, OXY remains susceptible to changes in demand and commodity prices, which are influenced by unpredictable global markets.
Previous Earnings Show Mixed Results
On November 12, OXY shares dropped by more than 1% following the announcement of its Q3 results. The adjusted EPS was $1, surpassing Wall Street’s expectation of $0.80, however, the company’s revenue of $7.2 billion was below the forecast of $7.4 billion.
Analysts Hold a Generally Optimistic Outlook
Despite recent challenges, analysts have a moderately bullish outlook on OXY stock, assigning it a “Moderate Buy” rating. Of the 25 analysts covering the company, six recommend a “Strong Buy,” one suggests a “Moderate Buy,” 17 recommend a “Hold,” and one advises a “Strong Sell.” OXY’s average price target stands at $60.64, which represents a potential upside of 20% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
