The 10-second takeaway
For the quarter ended March 31 (Q1), Occidental Petroleum beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew slightly.
Margins shrank across the board.
Occidental Petroleum reported revenue of $6.27 billion. The seven analysts polled by S&P Capital IQ expected sales of $6.05 billion on the same basis. GAAP reported sales were 9.7% higher than the prior-year quarter's $5.73 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.92. The 15 earnings estimates compiled by S&P Capital IQ predicted $1.95 per share. GAAP EPS of $1.92 for Q1 were 1.1% higher than the prior-year quarter's $1.90 per share. (The prior-year quarter included $0.18 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 53.0%, 290 basis points worse than the prior-year quarter. Operating margin was 41.8%, 230 basis points worse than the prior-year quarter. Net margin was 24.8%, 230 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $6.38 billion. On the bottom line, the average EPS estimate is $2.06.
Next year's average estimate for revenue is $26.09 billion. The average EPS estimate is $8.54.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,322 members out of 1,366 rating the stock outperform, and 44 members rating it underperform. Among 289 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 281 give Occidental Petroleum a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Occidental Petroleum is outperform, with an average price target of $118.15.
Is Occidental Petroleum the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.
- Add Occidental Petroleum to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.