Occidental Petroleum Corporation (OXY), headquartered in Houston, Texas, acquires, explores, and develops oil and gas properties. Valued at $48.8 billion by market cap, the company also manufactures and markets a variety of basic chemicals, vinyls and performance chemicals. The oil giant is expected to announce its fiscal fourth-quarter earnings for 2024 after the market closes on Tuesday, Feb. 18.
Ahead of the event, analysts expect OXY to report a profit of $0.65 per share on a diluted basis, down 12.2% from $0.74 per share in the year-ago quarter. The company has beat or matched Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect OXY to report EPS of $3.32, down 10.3% from $3.70 in fiscal 2023. Its EPS is expected to decline 5.4% year over year to $3.14 in fiscal 2025.
OXY stock has underperformed the S&P 500’s ($SPX) 25% gains over the past 52 weeks, with shares down 10.4% during this period. Similarly, it underperformed the Energy Select Sector SPDR Fund’s (XLE) 16.6% gains over the same time frame.
OXY's decline in performance is attributed to the CrownRock acquisition and subsequent oil price decline. To address debt, the company has divested non-core assets, including its Western Midstream interest. Moreover, OXY's results are vulnerable to fluctuations in demand and commodity prices, with exposure to volatile global markets.
On Nov. 12, OXY shares closed down more than 1% after reporting its Q3 results. Its adjusted EPS of $1 topped Wall Street expectations of $0.80. The company’s revenue was $7.2 billion, falling short of Wall Street forecasts of $7.4 billion.
Analysts’ consensus opinion on OXY stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 25 analysts covering the stock, six advise a “Strong Buy” rating, one suggests a “Moderate Buy,” 17 give a “Hold,” and one recommends a “Strong Sell.” OXY’s average analyst price target is $60.64, indicating a potential upside of 20% from the current levels.
