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Market Overview

Occidental Petroleum Earnings Preview

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Occidental Petroleum (NYSE:OXY) unveils its next round of earnings this Tuesday, February 16. Here is Benzinga's everything-that-matters guide for the earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Occidental Petroleum EPS loss is expected to be around $0.58, according to sell-side analysts. Sales will likely be near $4.37 billion. Occidental Petroleum reported a loss of $0.3 when it published results during the same quarter last year. Sales in that period totaled $6.80 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 93.33% decrease in the company's earnings. Revenue would have fallen 35.7% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate -0.72 -1.68 -0.62 -0.17
EPS Actual -0.84 -1.76 -0.52 -0.30
Revenue Estimate 4.28 B 3.88 B 5.18 B 6.45 B
Revenue Actual 3.28 B 2.98 B 6.45 B 6.80 B

Stock Performance

Shares of Occidental Petroleum were trading at $25 as of February 11. Over the last 52-week period, shares are down 38.91%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Occidental Petroleum is scheduled to hold the call at 11:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings