Occidental Petroleum Earnings: Here’s Why Shares are Up Now

Occidental Petroleum Corporation (NYSE:OXY) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.57%.

Occidental Petroleum Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 0% to $1.64 in the quarter versus EPS of $1.64 in the year-earlier quarter.

Revenue: Rose 2.94% to $5.96 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Occidental Petroleum Corporation reported adjusted EPS income of $1.64 per share. By that measure, the company beat the mean analyst estimate of $1.6. It missed the average revenue estimate of $6.18 billion.

Quoting Management: “We continue to see positive results from our focused drilling program and improved domestic operational efficiencies. Year-to-date, we have achieved a 21-percent reduction in our drilling costs relative to total year 2012. Domestic oil and gas operating expenses were $14.17 per BOE for the first half of 2013, a 19 percent improvement from total year 2012 rates. Total company operating expenses were $13.66 per BOE for the first six months of 2013, a 9-percent improvement from year-end 2012 rates. Our year-to-date capital spending is below the planned levels in part as a result of the early success of the cost-saving efforts. Our focus on operational efficiency has helped us generate $6.4 billion of cash flow from operations before working capital changes and increase our cash balance to $3.1 billion from the year-end level of $1.6 billion.”

Key Stats (on next page)…

Revenue increased 0.93% from $5.91 billion in the previous quarter. EPS decreased 2.96% from $1.69 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.84 to a profit $1.91. For the current year, the average estimate has moved up from a profit of $7.07 to a profit of $7.09 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)