Occidental Petroleum (OXY) will report its fourth-quarter results today, with analysts expecting a slight decline in earnings and revenue.
Earnings per share are expected to come in at $0.68, representing an 8% year-over-year decrease.Revenue is forecasted to decline by 4.9%, reaching $6.98 billion.Buffett’s Berkshire Ups Occidental Stake
In a notable move, Warren Buffett’s Berkshire Hathaway increased its stake in Occidental Petroleum ahead of the earnings announcement.
On February 12, Berkshire raised its holding to 28.3% in OXY.Berkshire purchased 763,017 shares worth $35.72 million at an average price of $46.8195 per share on February 7.Analyst Views Ahead of Q4 Results
As OXY prepares to release its earnings, analysts have mixed opinions about its stock.
Roth MKM analyst Leo Mariani lowered the price target from $56 to $54, citing oil price risks due to increased supply from OPEC. However, he believes sanctioned countries like Iran and Russia may offset this.Goldman Sachs analyst Neil Mehta downgraded OXY from Neutral to Sell, lowering the price target from $54 to $45.Mehta sees OXY prioritizing debt reduction after acquiring CrownRock in January 2024. The company aims to reduce its $27.6 billion debt to $15 billion before returning focus to shareholder distributions.Options Traders’ Expectations
Options traders are anticipating movement in the stock post-earnings.
The expected earnings move is calculated at 5.01% in either directionStock Outlook
Wall Street’s consensus on OXY stock remains neutral with a modest upside potential.
Average price target for OXY is $58.69, implying a 22.12% upside potential from current levels.Important HighlightsBuffett’s Confidence: Berkshire’s increased stake suggests confidence in Occidental, despite challenges.Analysts’ Diverging Views: Analysts are split on OXY’s future, with some highlighting concerns over debt and oil prices while others see recovery potential.