Warren Buffett’s shares fall due to loss of profits; Hiking Dividend 38%

Warren Buffett Stock western oil (OXY) missed analysts’ fourth-quarter earnings targets after Monday’s market close. As the energy company reported explosive profit growth for the year, OXY shares traded lower on Monday afternoon.


Buffett Stock: Occidental Petroleum Earnings

Estimates: Analysts had forecast earnings growth of 22% to $1.81 per share in the fourth quarter, with revenue rising 6% to $8.37 billion. For the full year, Wall Street expects EPS to soar 279% to $9.68. Analysts saw sales rise 43% to $37.1 billion

Results: Occidental Petroleum reported fourth-quarter earnings down 9% to $1.61 per share, while revenue rose 4% to $8.22 billion. On the year, EPS jumped 267% to $9.35 while sales jumped 43% to $37.1 billion.

The energy company announced plans to return $3 billion to shareholders through share buybacks in 2023. OXY also increased its dividend by 38%. Occidental Petroleum returned $562 million to shareholders in the fourth quarter and $3 billion throughout 2022.

“Our performance in the fourth quarter of 2022 capped a year of strong results, during which we set operational records in our oil and gas businesses in the United States, the Gulf of Mexico and internationally,” said CEO Vicki Hollub in a statement.

In the third quarter, the American energy company posted mixed results. EPS climbed 180% to $2.44, just below analysts’ projections. Sales hit $9.5 billion, a 40% year-over-year gain and just above views.

Occidental Petroleum stock fell more than 1% on Monday after normal market trading. Throughout Monday, Buffett stock rose slightly before ending the day flat. OXY is down 6% for the year and 8.7% in February.

Occidental Petroleum shares rank fifth in the Oil & Gas – Exploration & Production industry group. Buffett stock has a composite rating of 73 out of 99. The stock has a relative strength rating of 52, an IBD stock proprietary review measuring stock price movement. The EPS score is 81.

Buffett loves OXY

Houston-based Occidental Petroleum was a Warren Buffett favorite in 2022 as rising oil and gas prices generated record profits for many energy companies. OXY primarily deals with petroleum, natural gas liquids and natural gas. It also has a petrochemical segment which has performed well in recent quarters.

Billionaire investor Buffett recently bought shares of Occidental Petroleum, with his Berkshire Hathaway (BRKA) adding more than 20 million OXY shares to its portfolio since July 2022. Berkshire Hathaway increased its stake in OXY to 21.4% of the company, according to FactSet.

In the fourth quarter, Berkshire sold about $15 billion worth of stock online. For the year 2022, the conglomerate’s stock purchases exceeded stock sales by $34.27 billion. This was mainly related to large investments in Chevron (CVX) and OXY stocks amid soaring oil prices, partly linked to the Russian-Ukrainian war.

Please follow Kit Norton on Twitter @KitNorton for more coverage.


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