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.
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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.
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