uploads/2017/08/OXY-2Q17-Post-EPS-Beat-or-Miss-1.jpg

Analyzing Occidental Petroleum’s Post-Earnings Stock Performance

By

Updated

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.

Article continues below advertisement

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.

Peers

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.

Advertisement

More From Market Realist