Debt Reduction and Analyst Expectations
Occidental Petroleum (OXY) is scheduled to release its third-quarter earnings report on Tuesday after the market closes. The company has a history of exceeding analyst expectations, having done so in the past four consecutive quarters.
Analysts anticipate Occidental Petroleum to report earnings of 74 cents per share and quarterly revenue of $7.232 billion. This represents a slight decrease in earnings compared to the previous quarter's $1.03 per share.
In August, Occidental Petroleum announced a significant reduction in its debt, driven by strong cash flow and asset sales. The company expects to achieve nearly 85% of its $4.5 billion debt reduction target by the end of the third quarter. Investors will be closely monitoring the company's progress on this front.
Analysts will be paying close attention to the performance of Occidental Petroleum's OxyChem, Upstream, and Midstream divisions. Last quarter, the Midstream division exceeded expectations, while the other two divisions met Wall Street's forecasts.
The average price target from analysts is $63.33, representing a potential 24.4% upside from the current share price. However, JPMorgan analyst John Royall recently issued a Neutral rating and a $56 price target for OXY.
Occidental Petroleum shares closed Monday's trading session at $50.81, up 0.57%. Investors will be watching closely to see how the stock reacts to the earnings report.