Devon Energy Prepares for Upcoming Q1 Earnings Announcement

Oklahoma City-based Devon Energy Corporation (DVN) is an independent energy company focused on exploring, developing, and producing oil, natural gas, and natural gas liquids. With a market capitalization of $20.2 billion, Devon’s operations are primarily based in the onshore regions of North America, particularly the U.S. The company is set to announce its fiscal Q1 earnings for 2025 after the market closes on Tuesday, May 6.

Analysts’ Expectations for Earnings

Before the earnings announcement, analysts estimate that Devon will report a profit of $1.25 per share, which represents a 7.8% increase from $1.16 per share in the same quarter last year. Devon has demonstrated a strong track record of exceeding Wall Street’s earnings estimates over the past four quarters. The previous quarter’s earnings of $1.16 per share surpassed expectations by a significant 16%.

Yearly Earnings Projections

For the upcoming fiscal year, analysts anticipate that DVN will report earnings per share (EPS) of $4.54, a decline of 5.8% from $4.82 in fiscal 2024. However, the EPS is expected to see a slight rise to $4.55 in fiscal 2026.

Stock Performance Overview

Over the past year, shares of DVN have dropped by 40.2%, significantly trailing the S&P 500 Index’s gain of 5.5% and the 14.9% loss in the Energy Select Sector SPDR Fund (XLE).

Recent Earnings Boost Investor Sentiment

On February 18, Devon announced better-than-expected Q4 earnings, resulting in a 7.7% increase in its share price during the following trading session. The company reported significant growth in sales of oil, gas, and NGLs, alongside an increase in marketing and midstream revenues. Overall revenues rose by 6.2% year-over-year to $4.4 billion, exceeding consensus estimates by 3.8%. Additionally, adjusted EBITDAX grew by 12.9% year-over-year to $2.1 billion, reflecting enhanced operational efficiency and profitability. The adjusted EPS of $1.16 also surpassed Wall Street expectations by 16%, further boosting investor confidence.

Analyst Ratings and Price Target

Wall Street analysts currently hold a moderately optimistic viewpoint on DVN’s stock, assigning an overall “Moderate Buy” rating. Of the 26 analysts covering the stock, 16 recommend “Strong Buy,” two suggest “Moderate Buy,” and eight indicate “Hold.” The average price target for DVN stands at $44.08, suggesting a considerable potential upside of 41.3% from current levels.

On the date of publication, Neharika Jain did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please view the Barchart Disclosure Policy here.

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