Occidental Petroleum Corporation (OXY), headquartered in Houston, Texas, is a leading energy company specializing in oil, natural gas, and chemical production. With a market cap of $45.80 billion, Occidental operates across the U.S., the Middle East, and Latin America, focusing on sustainable energy solutions and enhanced oil recovery technologies. The company is set to release its Q3 earnings report after the market closes on Tuesday, Nov. 12.
Ahead of the event, analysts expect OXY to report a profit of $0.84 per share, down 28.8% from $1.18 in the year-ago quarter. The company has consistently beaten or matched Wall Street's earnings estimates in the last four quarters.
Occidental Petroleum's adjusted earnings of $1.03 per share for the last quarter surpassed the consensus estimate by 33.8%. The company's earnings beat was driven by higher production volumes and improved oil and NGL prices.
For fiscal 2024, analysts expect OXY to report EPS of $3.43, down 7.30% from $3.70 in fiscal 2023.
OXY stock is down 13.5% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 23% gains and the Energy Select Sector SPDR Fund’s (XLE) 7.8% returns over the same time frame.
OXY’s stock rose 4.3% after its Q2 earnings release on Aug. 7. The company reported a solid financial performance, with its net revenues growing by 1.7% annually. However, OXY's weak price momentum may be attributed to its increasing debt burden following the recent acquisition of CrownRock. The company took on significant debt to finance the $12 billion deal, borrowing $9.1 billion and assuming an additional $1.2 billion of CrownRock's existing debt.
The consensus opinion on OXY stock is moderately optimistic, with an overall “Moderate Buy” rating. Of the 24 analysts covering the stock, six advise a “Strong Buy” rating, one suggests a “Moderate Buy,” 16 indicate a “Hold,” and one advises “Strong Sell.” OXY’s average analyst price target is $64.83, suggesting a potential upside of 25.5% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
