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It's Showtime for Occidental Petroleum

By Seth Jayson - Updated Apr 10, 2017 at 1:46PM

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Checking expectations

Occidental Petroleum (NYSE: OXY) is expected to report Q1 earnings on April 25. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Occidental Petroleum's revenues will grow 3.1% and EPS will wane -19.3%.

The average estimate for revenue is $6.47 billion. On the bottom line, the average EPS estimate is $1.55.

Revenue details
Last quarter, Occidental Petroleum recorded revenue of $6.17 billion. GAAP reported sales were 2.3% higher than the prior-year quarter's $6.03 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.83. GAAP EPS of $0.41 for Q4 were 80% lower than the prior-year quarter's $2.01 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 121.7%, 940 basis points better than the prior-year quarter. Operating margin was 9.1%, much worse than the prior-year quarter. Net margin was 5.4%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $26.89 billion. The average EPS estimate is $7.12.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,366 members out of 1,411 rating the stock outperform, and 45 members rating it underperform. Among 259 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 250 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 $98.61.

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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Stocks Mentioned

Occidental Petroleum Corporation Stock Quote
Occidental Petroleum Corporation
OXY
$29.16 (-1.65%) $0.49

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