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Occidental Petroleum (OXY) Q1 Earnings: What's in Store?
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Occidental Petroleum (OXY - Free Report) is scheduled to report first-quarter 2017 results before the opening bell on May 4. Last quarter, the company reported lower-than-expected earnings of 333.33%. Let’s see how things are shaping up prior to this announcement.
Factors to Consider
The company’s production guidance for first-quarter 2017 is in the range of 590,000–595,000 barrels of oil equivalent per day compared with production volume in year-ago quarter which was 590,000 barrels of oil equivalents per day. Exploration expenses in the first quarter are expected to be around $25 million.
Permian Resources production guidance for the first quarter is in the range of 127,000–132,000 barrels of oil equivalent per day higher than 2016 levels, primarily due to the additional wells spud in the region. The first-quarter international production is anticipated to be down by 15,000 barrels of oil equivalent per day as a result of for turnarounds, PSCs and quota compliance.
Its Midstream segment is expected to generate a pre-tax loss of $60–$70 million in first quarter. The loss is primarily due to annual planned maintenance in foreign pipeline business. However, the strong caustic soda prices are anticipated to generate earnings of $150 million from Chemical division in the quarter to be reported.
Earnings Whispers
Our proven model does not conclusively show that Occidental Petroleum is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The Most Accurate estimate is pegged at 9 cents while the Zacks Consensus Estimate is pegged at 14 cents resulting in Earnings ESP of -35.71%.
Zacks Rank: Occidental Petroleum carries a Zacks Rank #3. Though the Zacks Rank #3 increases the possibility of a beat, an ESP of -35.71% makes it unlikely this season.
We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Occidental Petroleum Corporation Price, Consensus and EPS Surprise
Instead, here are a few players in the Zacks categorized Oils-Energy sector that have the right combination of elements to post an earnings beat this quarter.
PBF Logistics LP has an earnings ESP of +10.91% and a Zacks Rank #1. It is expected to report first-quarter 2017 earnings on May 4.
NOW Inc. (DNOW - Free Report) has an earnings ESP of +17.39% and a Zacks Rank #2. It is expected to report first-quarter 2017 earnings on May 3.
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Occidental Petroleum (OXY) Q1 Earnings: What's in Store?
Occidental Petroleum (OXY - Free Report) is scheduled to report first-quarter 2017 results before the opening bell on May 4. Last quarter, the company reported lower-than-expected earnings of 333.33%. Let’s see how things are shaping up prior to this announcement.
Factors to Consider
The company’s production guidance for first-quarter 2017 is in the range of 590,000–595,000 barrels of oil equivalent per day compared with production volume in year-ago quarter which was 590,000 barrels of oil equivalents per day. Exploration expenses in the first quarter are expected to be around $25 million.
Permian Resources production guidance for the first quarter is in the range of 127,000–132,000 barrels of oil equivalent per day higher than 2016 levels, primarily due to the additional wells spud in the region. The first-quarter international production is anticipated to be down by 15,000 barrels of oil equivalent per day as a result of for turnarounds, PSCs and quota compliance.
Its Midstream segment is expected to generate a pre-tax loss of $60–$70 million in first quarter. The loss is primarily due to annual planned maintenance in foreign pipeline business. However, the strong caustic soda prices are anticipated to generate earnings of $150 million from Chemical division in the quarter to be reported.
Earnings Whispers
Our proven model does not conclusively show that Occidental Petroleum is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The Most Accurate estimate is pegged at 9 cents while the Zacks Consensus Estimate is pegged at 14 cents resulting in Earnings ESP of -35.71%.
Zacks Rank: Occidental Petroleum carries a Zacks Rank #3. Though the Zacks Rank #3 increases the possibility of a beat, an ESP of -35.71% makes it unlikely this season.
We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Occidental Petroleum Corporation Price, Consensus and EPS Surprise
Occidental Petroleum Corporation Price, Consensus and EPS Surprise | Occidental Petroleum Corporation Quote
Stocks to Consider
Instead, here are a few players in the Zacks categorized Oils-Energy sector that have the right combination of elements to post an earnings beat this quarter.
PBF Logistics LP has an earnings ESP of +10.91% and a Zacks Rank #1. It is expected to report first-quarter 2017 earnings on May 4.
Global Partners LP (GLP - Free Report) is expected to report first-quarter 2017 earnings on May 9. It has an earnings ESP of +233.33% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
NOW Inc. (DNOW - Free Report) has an earnings ESP of +17.39% and a Zacks Rank #2. It is expected to report first-quarter 2017 earnings on May 3.
5 Trades Could Profit ""Big-League"" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>