Occidental Petroleum Outruns Estimates Again

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Occidental Petroleum (NYS: OXY) reported earnings on Jan. 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Occidental Petroleum beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly, and GAAP earnings per share expanded significantly.

Gross margins dropped, operating margins expanded, net margins increased.

Revenue details
Occidental Petroleum chalked up revenue of $6.03 billion. The five analysts polled by S&P Capital IQ foresaw sales of $5.70 billion. Sales were 31% higher than the prior-year quarter's $5.06 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $2.02. The 16 earnings estimates compiled by S&P Capital IQ predicted $1.94 per share on the same basis. GAAP EPS of $2.01 for Q4 were 35% higher than the prior-year quarter's $1.49 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 29.9%, 9,950 basis points worse than the prior-year quarter. Operating margin was 57.9%, 1,870 basis points better than the prior-year quarter. Net margin was 27.1%, 80 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $5.71 billion. On the bottom line, the average EPS estimate is $1.95.

Next year's average estimate for revenue is $24.40 billion. The average EPS estimate is $8.53.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,323 members out of 1,366 rating the stock outperform, and 43 members rating it underperform. Among 333 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 323 give Occidental Petroleum a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Occidental Petroleum is outperform, with an average price target of $115.80.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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