Yahoo Finance Analyst Forecasts Just Became More Bearish On Occidental Petroleum Corporation (NYSE:OXY)
The latest analyst coverage could presage a bad day for Occidental Petroleum Corporation (NYSE:OXY), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.
Following the latest downgrade, the eight analysts covering Occidental Petroleum provided consensus estimates of US$25b revenue in 2024, which would reflect a discernible 7.4% decline on its sales over the past 12 months. Statutory earnings per share are presumed to accumulate 2.5% to US$3.82. Prior to this update, the analysts had been forecasting revenues of US$30b and earnings per share (EPS) of US$3.85 in 2024. So there's been a clear change in analyst sentiment in the recent update, with the analysts making a measurable cut to revenues and reconfirming their earnings per share estimates.
See our latest analysis for Occidental Petroleum
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 9.7% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 13% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.1% per year. It's pretty clear that Occidental Petroleum's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Occidental Petroleum's revenues are expected to grow slower than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Occidental Petroleum after today.
Worse, Occidental Petroleum is labouring under a substantial debt burden, which - if today's forecasts prove accurate - the forecast downgrade could potentially exacerbate. See why we're concerned about Occidental Petroleum's balance sheet by visiting our risks dashboard for free on our platform here.
You can also see our analysis of Occidental Petroleum's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
