News

Occidental Petroleum (OXY) came out with quarterly earnings of $0.65 per share, beating the Zacks Consensus Estimate of $0.56 per share. This compares to earnings of $1.09 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 16.07%. A quarter ago, it was expected that this oil and gas exploration and production company would post earnings of $0.74 per share when it actually produced earnings of $0.74, delivering no surprise.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Occidental, which belongs to the Zacks Oil and Gas - Integrated - United States industry, posted revenues of $6.01 billion for the quarter ended March 2024, missing the Zacks Consensus Estimate by 9.79%. This compares to year-ago revenues of $7.26 billion. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Occidental shares have added about 8.9% since the beginning of the year versus the S&P 500's gain of 8.6%.

What's Next for Occidental?

While Occidental has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Occidental: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.91 on $7.44 billion in revenues for the coming quarter and $3.81 on $30.8 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Integrated - United States is currently in the top 12% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, PHX Minerals (PHX), has yet to report results for the quarter ended March 2024. The results are expected to be released on May 8.

This oil and gas company is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of -63.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

PHX Minerals' revenues are expected to be $7.45 million, down 37.2% from the year-ago quarter.

Where Will Stocks Go…

If Biden Wins? If Trump Wins?

The answers may surprise you.

Since 1950, even after negative midterm years, the market has never had a lower presidential election year. With voters energized and engaged, the market has been almost unrelentingly bullish no matter which party wins!

Now is the time to download Zacks' free Special Report with 5 stocks that offer extreme upside for both Democrats and Republicans…

1. Medical manufacturer has gained +11,000% in the last 15 years.

2. Rental company is absolutely crushing its sector.

3. Energy powerhouse plans to grow its already large dividend by 25%.

4. Aerospace and defense standout just landed a potentially $80 billion contract.

5. Giant Chipmaker is building huge plants in the U.S.

Hurry, Download Special Report FREE >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.