Devon Energy Prepares for Q4 Earnings Amid Market Challenges
Company Overview and Upcoming Earnings Report
Based in Oklahoma City, Oklahoma, Devon Energy Corporation (DVN) is a leading independent energy company dedicated to the exploration, development, and production of oil, natural gas, and natural gas liquids. With a market capitalization of $24.9 billion, Devon primarily operates in the United States, capitalizing on rich resources in regions like the Permian Basin, Eagle Ford, and Anadarko Basin. The company will announce its fiscal Q4 earnings results after the market closes on Tuesday, February 25.
Analysts’ Expectations and Comparisons
Analysts forecast that DVN will report earnings of $1.02 per share, which represents a 27.7% decline from the $1.41 per share reported in the same quarter last year. Notably, Devon has exceeded Wall Street’s earnings per share (EPS) estimates in each of the last four quarters.
For fiscal year 2024, predictions indicate that DVN’s EPS will be $4.68, reflecting an 18% drop compared to $5.71 in fiscal 2023.
Stock Performance Trends
Over the past year, Devon Energy shares have declined by 7.6%. This performance trails the S&P 500 Index ($SPX), which has seen a substantial increase of 26.5%, and the Energy Select Sector SPDR Fund (XLE), which has returned 17.4% during the same period.
The decline can be attributed to falling oil prices, which have adversely affected revenue and profits. Additionally, Devon has encountered operational challenges and heightened competition, resulting in reduced production levels.
Market Reactions and Analyst Views
On January 14, shares of Devon Energy gained over 1% after Benchmark Co. upgraded its rating from “Hold” to “Buy” with a new price target set at $44.
Analysts maintain a cautiously optimistic outlook for DVN stock, reflecting a “Moderate Buy” consensus. Out of 26 analysts covering the stock, 16 recommend a “Strong Buy,” two suggest “Moderate Buys,” and eight advise holding the stock. This is an improvement in analysts’ sentiments compared to three months ago, when 13 analysts recommended a “Strong Buy.”
The average analyst price target for DVN is $49.85, indicating a potential upside of 31.4% from its current price.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
