NEW YORK (TheStreet) -- Occidental Petroluem (OXY) shares are up 0.9% to $95.27 in pre-market trading on Monday following the release of the company's first quarter earnings report.
The oil, gas and chemical company reported earnings of $1.75 per diluted share, beating analyst quarterly estimates by 5 cents.
Year over year quarterly revenues rose 3.6% to $6.09 billion, missing analysts $6.3 billion estimate.
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TheStreet Ratings team rates OCCIDENTAL PETROLEUM CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate OCCIDENTAL PETROLEUM CORP (OXY) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- OXY's revenue growth has slightly outpaced the industry average of 0.2%. Since the same quarter one year prior, revenues slightly increased by 0.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- OXY's debt-to-equity ratio is very low at 0.16 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 1.08, which illustrates the ability to avoid short-term cash problems.
- The gross profit margin for OCCIDENTAL PETROLEUM CORP is rather high; currently it is at 57.52%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 26.62% significantly outperformed against the industry average.
- Net operating cash flow has increased to $3,141.00 million or 11.66% when compared to the same quarter last year. In addition, OCCIDENTAL PETROLEUM CORP has also modestly surpassed the industry average cash flow growth rate of 5.61%.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 389.0% when compared to the same quarter one year prior, rising from $336.00 million to $1,643.00 million.
- You can view the full analysis from the report here: OXY Ratings Report