Occidental Petroleum (OXY) Is About to Report Next Week. Here Is What to Expect

Oil business Occidental Petroleum (OXY) is set to launch its Q4 results on February 18. Wall Street experts prepare for that the business will report revenues of $0.68 per share, showing an 8% year-over-year decline. On the other hand, earnings are anticipated to decrease by 4.9% from the exact same quarter in 2015, reaching $6.98 billion, according to information from the TipRanks Projection page.

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It is very important to highlight that OXY stock has actually lost over 15% over the previous year due to falling oil costs.

Buffett’s Berkshire Ups Occidental Ahead of Q4 Print

On February 12, Warren Buffett’s Berkshire Hathaway ( NYSE: BRK.A) ( NYSE: BRK.B) has actually once again increased its stake in Occidental Petroleum, bringing it to 28.3%. On February 7, the financial investment corporation purchased an extra 763,017 OXY shares valued at $35.72 million. According to Kind 4 submitted with the SEC on February 11, Berkshire acquired one single great deal of Occidental stock at a weighted typical rate of $46.8195 per share.

Experts’ Views on OXY Ahead of Q4 Outcomes

Ahead of OXY’s Q4 outcomes, Roth MKM expert Leo Mariani reduced the rate target to $54 from $56 and kept a Neutral ranking. The company raised its 2025 oil rate projection to $71 however kept in mind a small danger of lower costs due to increased supply from OPEC. Nevertheless, Mariani thinks this might be balanced out by minimized exports from approved nations like Iran and Russia.

On the other hand, another expert, Neil Mehta of Goldman Sachs, reduced Occidental Petroleum from Neutral to Offer and cut the rate target from $54 to $45. He keeps in mind that OXY is focusing on financial obligation decrease following its January 2024 acquisition of CrownRock, which will take years before it can improve investor returns. He included that management strategies to bring financial obligation to $15 billion before turning its attention to investor circulations. Significantly, since the 3rd quarter of 2024, OXY reported an overall financial obligation of roughly $27.6 billion.

As an outcome, Mehta anticipates OXY’s stock to underperform peers, specifically throughout market declines, given that it does not have a strong buyback program to support the share rate.

Op tions Traders Prepare for a 5.01% Move

Utilizing TipRanks’ Options tool, we can see what alternatives traders are anticipating from the stock instantly after its revenues report. The anticipated revenues relocation is identified by computing the at-the-money straddle of the alternatives closest to expiration after the revenues statement. If this sounds complex, do not stress, the Options tool does this for you.

Undoubtedly, it presently states that alternatives traders are anticipating a 5.01% relocation in either instructions.