Occidental Petroleum Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Occidental Petroleum (NYSE:OXY) will unveil its latest earnings tomorrow, Thursday, January 31, 2013. Occidental Petroleum is an international organization with subsidiaries operating in the oil and gas, chemical, and midstream markets.

Occidental Petroleum Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.66 per share, a decline of 17.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.74. Between one and three months ago, the average estimate moved down. It also has dropped from $1.68 during the last month. Analysts are projecting profit to rise by 17.4% versus last year to $6.93.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported profit of $1.70 per share against a mean estimate of net income of $1.63, and the quarter before, the company exceeded forecasts by 4 cents with profit of $1.64 versus a mean estimate of net income of $1.60.

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A Look Back: In the third quarter, profit fell 22.4% to $1.38 billion ($1.69 a share) from $1.77 billion ($2.17 a share) the year earlier, but exceeded analyst expectations. Revenue fell 0.2% to $5.99 billion from $6.01 billion.

Here’s how Occidental Petroleum traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:


Wall St. Revenue Expectations: Analysts are projecting a decline of 3% in revenue from the year-earlier quarter to $5.85 billion.

Analyst Ratings: With 11 analysts rating the stock a buy, none rating it a sell and eight rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

The company is trying to use this earnings announcement to rebound from income declines in the past two quarters. Net income dropped 26.9% in the second quarter and then again in the third quarter.

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 6.2% in the second quarter and dropped again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.52 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)