Occidental Petroleum Prepares for Q1 Results Amid Mixed Forecasts

Houston, Texas-based Occidental Petroleum Corporation (OXY) operates as an integrated oil and gas company, focusing on the acquisition, exploration, and development of oil and gas properties. The company’s market capitalization stands at $37.6 billion, with operations extending across the United States, the Middle East, and other global regions.

Anticipated Q1 Results

Occidental Petroleum plans to announce its Q1 results after the market closes on Wednesday, May 7. Analysts project the company will report an adjusted EPS of $0.72, reflecting a 10.8% increase from the $0.65 reported in the same period last year. Notably, OXY has exceeded market expectations in its earnings per share in each of the last four quarters.

Long-term Earnings Forecast

Looking ahead, OXY’s earnings for the complete fiscal year 2025 are predicted to drop by 24%, falling from $3.46 per share in fiscal 2024 down to $2.63 per share. However, analysts expect a recovery in fiscal 2026, with earnings projected to rise by 19% year-over-year to $3.13 per share.

Stock Price Trends

Over the past year, OXY’s stock has decreased by 40.9%, markedly underperforming against the Energy Select Sector SPDR Fund (XLE), which dropped 15.5%, and the S&P 500 Index ($SPX), which gained 6% during the same period.

In contrast, following the announcement of its mixed Q4 results on February 18, OXY’s stock prices increased by 4.4%. The company reported a 19.6% year-over-year increase in production, reaching 1,463 Mboed. However, other factors such as decreased pricing and struggles within its midstream and marketing sector led to a 9.2% decline in overall revenues, totaling $6.8 billion and falling short of market expectations by 4.2%. Additionally, OXY faced $1.3 billion in asset impairment and related charges, which negatively impacted its GAAP-based income.

On a positive note, Occidental’s non-GAAP net income rose by 11.5% year-over-year to $792 million, and its adjusted EPS of $0.80 exceeded consensus estimates by 19.4%.

Analyst Ratings and Price Targets

The consensus recommendation for OXY remains neutral, reflected in an overall “Hold” rating. Among the 25 analysts currently monitoring the stock, there are three “Strong Buys,” one “Moderate Buy,” 18 “Holds,” and two “Strong Sells.” At present, OXY’s stock is trading 26.3% below its average price target of $49.04.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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