Occidental Petroleum Corporation to Announce Fiscal Second-Quarter Earnings Amid Analysts' Cautious Outlook
Occidental Petroleum Corporation (OXY), the Texas-based energy giant, is poised to release its fiscal second-quarter earnings for 2025 after the market closes on Wednesday, August 6. The company, valued at $42 billion by market cap, is expected to report a profit of $0.33 per share on a diluted basis, down 68% from $1.03 per share in the year-ago quarter.
As OXY prepares to unveil its financial performance for the second quarter, analysts are cautious about their expectations, with some predicting a decline in earnings per share (EPS) compared to last year's numbers. The company has consistently surpassed Wall Street's EPS estimates in its last four quarterly reports, but this time around, investors may be faced with a different story.
Earnings Per Share Expectations
Ahead of the announcement, analysts are forecasting OXY to report EPS of $0.33 per share on a diluted basis for the fiscal second quarter, marking a significant decline from $1.03 per share in the same period last year. This represents a 68% decrease in EPS compared to the previous year's numbers. The company's ability to meet these expectations will be closely watched by investors and analysts alike.
Consensus Opinion on OXY Stock
Analysts' consensus opinion on OXY stock is cautious, with a "Hold" rating overall. Out of 23 analysts covering the stock, three advise a "Strong Buy" rating, two suggest a "Moderate Buy," 16 give a "Hold," and two recommend a "Strong Sell." This mixed sentiment reflects the complexities of the energy market and OXY's performance in recent quarters.
Recent Performance
OXY's shares have underperformed the S&P 500 Index ($SPX) by 31% over the past 52 weeks, with the index gaining 12.7% during this period. Similarly, it has underperformed the Energy Select Sector SPDR Fund (XLE), which lost 7% over the same time frame. The company's ability to recover from these losses will be a key area of focus as it reports its second-quarter earnings.
First Quarter Results
On May 7, OXY reported its first-quarter results, surpassing Wall Street expectations with an adjusted EPS of $0.87 compared to estimates of $0.73. The company's revenue was $6.8 billion, falling short of Wall Street forecasts of $7.2 billion. This mixed performance highlights the challenges facing OXY in a volatile energy market.
Analyst Price Targets
OXY's average analyst price target is $49.25, indicating a potential upside of 13.1% from the current levels. However, this estimate may not accurately reflect the company's future prospects, especially given the cautious outlook from analysts.
Conclusion
As OXY prepares to announce its fiscal second-quarter earnings, investors and analysts will be closely watching for any signs of improvement or decline in the company's performance. The energy market is inherently volatile, and OXY's ability to adapt to changing circumstances will play a crucial role in determining its future prospects.