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Occidental Petroleum: Poised for Strong 3Q16 Results

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Occidental Petroleum’s 3Q16 revenue estimates

Occidental Petroleum (OXY) is set to report its 3Q16 earnings on November 1, 2016, before the market opens. For 3Q16, Wall Street analysts expect Occidental Petroleum to report revenues of ~$2.8 billion, which would be ~11% lower than its 3Q15 revenues of ~$3.1 billion. But when compared sequentially with 2Q16, Occidental Petroleum’s 3Q16 revenues expectations are ~9% higher.

Due to the steep downward trend in energy prices, upstream companies Devon Energy (DVN), Marathon Oil (MRO), and Consol Energy (CNX) are expecting ~26%, ~14%, and ~27% YoY (year-over-year) declines, respectively, in their 3Q16 revenues.

Notably, the Energy Select Sector SPDR ETF (XLE) generally invests at least 95% of its total assets in oil and gas companies.

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3Q16 EPS estimates

For 3Q16, Wall Street analysts expect Occidental Petroleum to report an adjusted loss of $0.07 per share, which is lower by $0.10 per share when compared with its 3Q15 profits of $0.03 per share. But when compared sequentially with 2Q16, OXY’s 3Q16 earnings expectations are higher by $0.11 per share.

3Q16 EBITDA estimates

For 3Q16, Wall Street analysts expect Occidental Petroleum to report EBITDA (earnings before interest, tax, depreciation and amortization) of ~$1.06 billion, which is ~27% lower than its 3Q15 adjusted EBITDA of ~$1.5 billion. But when compared sequentially with 2Q16, OXY’s 3Q16 EBITDA expectations are ~25% higher.

In this series

Now that we’ve looked at Occidental Petroleum’s 3Q16 earnings expectations, we’ll continue to analyze Occidental Petroleum’s earnings trends, production guidance, what Wall Street analysts are saying about the company ahead of its earnings, and how OXY’s stock price has reacted to past earnings.

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