NEW YORK (TheStreet) -- Shares of Occidental Petroleum (OXY) - Get Report are down by 2.16% to $70.11 in afternoon trading on Tuesday, as the company is expected to report a sharp year over year decline in earnings and revenue for the 2015 third quarter.
The company will release its latest financial results before the market open on Wednesday morning.
Additionally, falling oil prices are also weighing on Occidental Petroleum's stock today. The company is a Houston-based oil and gas exploration and production company.
Analysts surveyed by Thomson Reuters are expecting the company to report a loss of 1 cent per share on revenue of $3.2 billion for the most recent quarter. Occidental Petroleum's earnings came in at $1.58 per share on revenue of $5.96 billion for the 2014 third quarter.
Oil prices are down today due to concerns regarding the global supply glut and inventory data out of the U.S. that is expected to show another rise in crude stocks, Reuters reports.
Separately, TheStreet Ratings team rates OCCIDENTAL PETROLEUM CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
We rate OCCIDENTAL PETROLEUM CORP (OXY) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- OXY's debt-to-equity ratio is very low at 0.25 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.16, which illustrates the ability to avoid short-term cash problems.
- 44.13% is the gross profit margin for OCCIDENTAL PETROLEUM CORP which we consider to be strong. Regardless of OXY's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, OXY's net profit margin of 5.07% compares favorably to the industry average.
- Net operating cash flow has significantly decreased to $805.00 million or 71.92% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, OCCIDENTAL PETROLEUM CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: OXY