The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Occidental Petroleum met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Occidental Petroleum notched revenue of $5.97 billion. The four analysts polled by S&P Capital IQ predicted net sales of $5.94 billion on the same basis. GAAP reported sales were 0.7% lower than the prior-year quarter's $6.01 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 $1.70. The 19 earnings estimates compiled by S&P Capital IQ forecast $1.63 per share. GAAP EPS of $1.70 for Q3 were 22% lower than the prior-year quarter's $2.17 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 40.5%, 1,160 basis points worse than the prior-year quarter. Operating margin was 39.3%, 560 basis points worse than the prior-year quarter. Net margin was 23.1%, 640 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $6.16 billion. On the bottom line, the average EPS estimate is $1.77.
Next year's average estimate for revenue is $24.64 billion. The average EPS estimate is $7.04.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,335 members out of 1,380 rating the stock outperform, and 45 members rating it underperform. Among 280 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 271 give Occidental Petroleum a green thumbs-up, and nine 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 $108.81.
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