Back to top

Image: Bigstock

Occidental (OXY) to Post Q1 Earnings: What's in the Offing?

Read MoreHide Full Article

Occidental Petroleum Corporation (OXY - Free Report) is scheduled to release first-quarter 2020 results on May 5. In the last reported quarter, the company delivered a negative earnings surprise of 233.3%.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

Occidental’s earnings in the first quarter are expected to have been impacted by an unprecedented drop in commodity prices and demand.

In order to offset the challenges, the company slashed its capital expenditure plan for 2020 and resorted to additional cost-savings measures to preserve liquidity. It also lowered total production in the wake of declining demand. These initiatives are likely to reflect on first-quarter results.

Q1 Expectation

The Zacks Consensus Estimate for the bottom line for the first quarter is pegged at a loss of 51 cents per share, indicating a decline of 160.7% from the prior-year reported figure.

What Our Quantitative Model Predicts

Our proven model doesn’t conclusively predict an earnings beat for Occidental this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: The company’s Earnings ESP is -11.58%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Occidental currently carries a Zacks Rank #3.

Stocks to Consider

Here are a few companies worth considering from the same sector that have the right combination of elements to beat on earnings in the upcoming releases.

Devon Energy (DVN - Free Report) is set to release first-quarter results on May 5. It has an Earnings ESP of +13.67% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Comstock Resources, Inc. (CRK - Free Report) is set to release first-quarter results on May 6. It has an Earnings ESP of +2.63% and a Zacks Rank of 3.

Talos Energy Inc. (TALO - Free Report) is set to release first-quarter results on May 6. It has an Earnings ESP of +40.00% and a Zacks Rank of 3.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>

Published in