Occidental (OXY) To Report Q3 Earnings: What's In The Cards?

Occidental Petroleum Corporation (NYSE:OXY) is set to report third-quarter 2019 earnings on Nov 4, after market close. In the last reported quarter, the oil and gas company delivered a positive earnings surprise of 6.59%.

Factors to Consider

Occidental expects third-quarter production between 1.1 million and 1.12 million barrels of oil equivalent per day post the acquisition of Anadarko Petroleum (NYSE:APC) in August and fewer shutdowns in Colorado's DJ basin. Previously, the company had predicted total production in the range of 725-739 thousand barrels of oil equivalent per day, which led to an improvement of 51.64% in the mid-point of the guidance. Higher production from domestic region is expected to have made a positive impact on the company’s third-quarter performance.

In spite of higher domestic production, commodity prices are likely to have declined year over year in the third quarter, which in turn might have dented margins and profitability.

Occidental is likely to have incurred increased interest expenses in the to-be-reported quarter due to high-cost acquisition. It also divested non-core assets and utilized proceeds to lower debt burden.

The Zacks Consensus Estimate for third-quarter total revenues is pegged at $5.46 billion, which indicates a decline of 11.6% from the year-ago quarter’s reported figure. Moreover, the Zacks Consensus Estimate for third-quarter earnings is pegged at 41 cents per share, which indicates a decline of 76.84% from the year-ago quarter’s figure.

Earnings Whispers

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 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Occidental carries a Zacks Rank #5 (Strong Sell).