Analyzing Occidental Petroleum’s Post-Earnings Stock Performance



Occidental Petroleum’s 2Q17 earnings

Occidental Petroleum (OXY) announced its 2Q17 earnings on August 2, 2017, after the market closed. In 2Q17, Occidental Petroleum reported revenues of ~$3.6 billion, higher than Wall Street analysts’ consensus for revenues of ~$3.0 billion.

Occidental Petroleum beat the EPS (earnings per share) estimates by $0.05 in 2Q17. OXY reported an adjusted profit of $0.15 per share, whereas the Wall Street analyst consensus was for a profit of $0.10 per share.

OXY’s 2Q17 earnings per share are $0.33 higher than its 2Q16 loss of $0.18 per share. However, when compared sequentially with 1Q17, OXY’s 2Q17 earnings per share are lower by $0.01 per share.

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Price action

In after-hours price action, Occidental Petroleum’s stock price traded as high as $61.55 before trading closed. In the three weeks leading into its earnings, Occidental Petroleum’s stock price increased from $58.68 to $61.37, mainly due to the increase in crude oil (USO) prices during the same period.

2Q16 post-earnings price action

Occidental Petroleum announced its 2Q16 earnings on August 3, 2016, before the market opened. In 2Q16, excluding its one-time items, OXY met the consensus EPS estimate for a loss of $0.18.

Following the release, OXY’s earnings were in line with analyst expectations. Occidental Petroleum’s stock price rose ~7% in five weeks.


The Energy Select Sector SPDR ETF (XLE) is grossly underperforming the S&P 500 ETF (SPY) in 2017. SPY is up ~12% whereas XLE is down ~11%. OXY’s peers Marathon Oil (MRO) and Range Resources (RRC) are down ~30% and ~48%, respectively, in 2017. Like Occidental Petroleum, Marathon Oil has operations in the Permian Basin. XLE invests at least 95% of its total assets in oil and gas companies.

In the next part, we’ll take a look at COP’s recent Wall Street ratings.


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