Roth Capital Issues Pessimistic Outlook for Occidental Petroleum's Q1 Earnings

Occidental Petroleum Co. (NYSE:OXY) has recently faced a downturn in earnings expectations according to Roth Capital. In a note released to investors on February 19th, 2025, analyst L. Mariani has lowered the Q1 2025 earnings per share (EPS) forecast for the company from $0.98 to $0.92. This change reflects Roth's cautious view on the oil and gas producer's performance in the upcoming quarter. The anticipated earnings for 2025 now fall below the consensus estimate of $3.58 per share for the full year.

Roth Capital's outlook comes after Occidental Petroleum shared its latest quarterly earnings report on February 18th. The company reported an EPS of $0.80 for the quarter, which was higher than the consensus estimate of $0.67 by $0.13. Despite this positive surprise, the company reported a revenue of $6.84 billion, which was lesser than the analysts' expectations of $7.14 billion. The net profit margin of Occidental during this period stood at 11.37%, with a return on equity of approximately 16.33%.

In addition to Roth's outlook, several other research firms have also issued their ratings and price targets for Occidental Petroleum. TD Cowen has adjusted its price target downwards from $80.00 to $68.00 while maintaining a 'buy' rating on the stock as of November 12th. Conversely, Raymond James increased their price target from $77.00 to $78.00, categorizing the stock as a 'strong buy' on November 21st. Furthermore, Stephens reaffirmed an ‘overweight’ rating with a price objective of $71.00 on February 19th. Jefferies Financial Group has raised their price target slightly from $53.00 to $54.00, offering a 'hold' rating, while JPMorgan Chase reiterated a 'neutral' stance with a $56.00 price target on November 8th.

The general sentiment toward Occidental Petroleum appears mixed, with two analysts recommending sell ratings, while thirteen suggest hold, six recommend buy, and one analyst extends a 'strong buy' rating. Currently, the consensus rating for OXY stock is 'Hold' with an average price target of $61.55, per MarketBeat data.

Occidental Petroleum's Recent Price Performance

On February 25th, Occidental Petroleum shares opened at $49.87. The company's fifty-day simple moving average stands at $49.26, while the 200-day average is at $51.28. Financial health indicators show a current ratio of 0.95 and a quick ratio of 0.76. The debt-to-equity ratio for Occidental is recorded at 0.95. The stock has remained within a 12-month trading range of $45.17 to $71.18. At present, Occidental has a market capitalization of about $46.80 billion, a price-to-earnings (P/E) ratio of 20.44, and a beta of 1.55, indicating some volatility relative to the market.

Institutional Ownership and Trading Activity

Several institutional investors have made changes to their holdings in Occidental Petroleum recently. Notably, Leavell Investment Management Inc. increased its stake by 3.3% in the third quarter, bringing their total shares up to 6,241, valued at approximately $323,000. Meanwhile, Howard Capital Management Inc. boosted their holdings by 5.4% in the fourth quarter, now owning 4,234 shares worth around $209,000. Another significant increase came from Deseret Mutual Benefit Administrators, which raised its stake by 27.1%, acquiring more shares during the fourth quarter. Overall, institutional investors own about 88.70% of Occidental Petroleum's shares.

Recent Insider Activity

In a notable development, Berkshire Hathaway Inc., a major shareholder, purchased 3,614,015 shares of Occidental stock on December 19th at an average price of $45.60 per share, totaling an investment of $164,799,084. This purchase increased their total ownership in the company to approximately 264,178,414 shares, valued at around $12 billion.

Dividend Announcement from Occidental Petroleum

Occidental Petroleum recently announced an increase in its quarterly dividend, set to be paid on April 15th. Shareholders on record as of March 10th will receive a dividend of $0.24 per share, compared to the previous quarterly dividend of $0.22. This new dividend reflects an annualized amount of $0.96, resulting in a yield of 1.93% and a payout ratio of 39.34%.

About Occidental Petroleum

Occidental Petroleum Corporation, through its subsidiaries, focuses on acquiring, exploring, and developing oil and gas properties within the United States, the Middle East, and North Africa. The company operates through three segments: Oil and Gas, Chemical, and Midstream and Marketing, primarily engaged in the exploration and production of oil, natural gas liquids, and natural gas.

Occidental, Earnings, Analysis