We expect integrated oil and gas company
Occidental Petroleum Corporation
) to beat expectations when it reports fourth-quarter 2012
results on Jan 31, 2013.
OCCIDENTAL PET (OXY): Free Stock Analysis
TRANSATL PETROL (TAT): Free Stock Analysis
VALERO ENERGY (VLO): Free Stock Analysis
EXXON MOBIL CRP (XOM): Free Stock Analysis
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Why a Likely Positive Surprise?
Our proven model shows that Occidental Petroleum is likely to
beat earnings because it has the right combination of two key
Positive Zacks ESP:
Earnings Surprise Prediction or ESP (Read:
Zacks Earnings ESP: A Better Method
), which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, is 0.60%. This is very
meaningful and a leading indicator of a likely positive earnings
surprise for shares.
Zacks Rank #3 (Hold):
The stocks with Zacks Ranks of #1, #2 and #3 have a significantly
higher chance of beating earnings. The sell rated stocks (#4 and
#5) should never be considered while going into an earnings
The combination of Occidental Petroleum's Zacks Rank #3 (Hold)
and 0.60% ESP make us very confident in looking for a positive
earnings beat on Jan 31, 2013.
What is Driving the Better Than Expected
Occidental Petroleum's well-diversified asset base, strong
balance sheet and liquidity position, steady capital investment
program, and cost cutting measures are expected to lead to a
positive earnings surprise in the current quarter.
The positive trend is seen in the trailing four quarter average
surprise of 2.33%. The company's third-quarter 2012 surprise was
4.29% due to higher revenue from Midstream, Marketing and Other
Other Stocks to Consider
Murphy Oil is not the only company looking up this earnings
season. We also see likely earnings beat coming from other
operators in the industry.
TransAtlantic Petroleum Ltd.
), Earnings ESP of +100.00% and Zacks Rank #2 (Buy)
Valero Energy Corporation
), Earnings ESP of +5.98% and Zacks Rank #2 (Buy)
Exxon Mobil Corporation
), Earnings ESP of +1.01% and Zacks Rank #3 (Hold)