Analysts Estimate Occidental Petroleum (OXY) to Report a Decline in Earnings: What to Look Out for

Core Viewpoint - The market anticipates a year-over-year decline in Occidental Petroleum's earnings despite an increase in revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - Occidental is expected to report quarterly earnings of $0.81 per share, reflecting a 31.4% decrease year-over-year, while revenues are projected at $7.47 billion, a 1% increase from the previous year [3]. - The earnings report is scheduled for November 12, 2024, and could lead to stock price increases if results exceed expectations, or declines if they fall short [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 5.61% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. - The Most Accurate Estimate for Occidental is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -10.27%, which complicates predictions of an earnings beat [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive reading is a strong predictor of an earnings beat, particularly when combined with a favorable Zacks Rank [8]. - However, a negative Earnings ESP reading does not necessarily indicate an earnings miss, making predictions less reliable for stocks with negative readings [9]. Historical Performance - In the last reported quarter, Occidental exceeded the expected earnings of $0.77 per share by delivering $1.03, resulting in a surprise of +33.77% [11]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [12]. Conclusion - Despite the potential for an earnings beat, Occidental does not currently appear to be a compelling candidate for such an outcome, and investors should consider other factors before making decisions [15].