Yahoo Finance Occidental (OXY) to Post Q2 Earnings: What's in the Cards?
Occidental Petroleum Corporation OXY is scheduled to release second-quarter 2020 results on Aug 10. In the last reported quarter, the company delivered a negative earnings surprise of 4.0%.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors to Consider
Occidental’s second-quarter production is expected to have declined sequentially, given a drop in oil demand. Its second-quarter earnings are expected to have been impacted by an unprecedented drop in commodity prices. Nonetheless, crude oil hedges are expected to have provided support to the company amid the falling commodity prices.
It slashed the capital expenditure plan for 2020 and resorted to additional cost-savings measures to preserve liquidity, which are expected to get reflected in second-quarter results.
Expectations
The Zacks Consensus Estimate for total second-quarter production is pegged at 1,374 thousand barrels of oil equivalent (MBOE) per day. The company expects second-quarter production in the range of 1,340-1,400 MBOE/d.
The Zacks Consensus Estimate for the bottom line for the second quarter is pegged at a loss of $1.66 per share, indicating a 271.1% decline from the prior-year reported figure.
What Our Quantitative Model Predicts
Our proven model predicts 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. This is the case here as you see below.
Occidental Petroleum Corporation Price and EPS Surprise
Occidental Petroleum Corporation price-eps-surprise | Occidental Petroleum Corporation Quote
Earnings ESP: The company’s Earnings ESP is +1.02%.
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.
Other Stocks to Consider
Here are a few other companies worth considering from the same sector that too have the right combination of elements to beat on earnings in the upcoming releases.
Bonanza Creek Energy BCEI is set to release second-quarter results on Aug 6, after market close. It has an Earnings ESP of +12.70% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
EOG Resources EOG is set to release second-quarter results on Aug 7. It has an Earnings ESP of +21.99% and a Zacks Rank of 2.
Enerplus Corporation ERF is set to release second-quarter results on Aug 7. It has an Earnings ESP of +18.18% and a Zacks Rank of 3.
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