Sunday, March 3, 2013

Will Occidental Petroleum Beat These Analyst Estimates?

Occidental Petroleum (NYSE: OXY  ) is expected to report Q4 earnings on Jan. 31. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Occidental Petroleum's revenues will compress -2.0% and EPS will drop -16.8%.

The average estimate for revenue is $5.92 billion. On the bottom line, the average EPS estimate is $1.68.

Revenue details
Last quarter, Occidental Petroleum tallied revenue of $5.97 billion. GAAP reported sales were 0.7% lower than the prior-year quarter's $6.01 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.70. GAAP EPS of $1.69 for Q3 were 22% lower than the prior-year quarter's $2.17 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 46.8%, 530 basis points worse than the prior-year quarter. Operating margin was 36.1%, 880 basis points worse than the prior-year quarter. Net margin was 23.1%, 640 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $24.49 billion. The average EPS estimate is $6.94.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,355 members out of 1,401 rating the stock outperform, and 46 members rating it underperform. Among 314 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 304 give Occidental Petroleum a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Occidental Petroleum is outperform, with an average price target of $108.81.

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