Based in Oklahoma City, Oklahoma, Devon Energy Corporation (DVN) is a top independent energy company focused on the exploration, development, and production of oil, natural gas, and natural gas liquids. Valued at a market cap of $24.9 billion, Devon operates primarily in the United States, with a strong presence in key resource-rich areas such as the Permian Basin, Eagle Ford, and Anadarko Basin. The company is ready to announce its fiscal Q4 earnings results after the market closes on Tuesday, Feb. 25.
Ahead of this event, analysts project DVN to report a profit of $1.02 per share, a 27.7% decline from $1.41 per share in the year-ago quarter. However, it has surpassed Wall Street’s EPS estimates in all of the last four quarters.
For fiscal year 2024, analysts expect DVN to report EPS of $4.68, marking a decline of 18% from $5.71 in fiscal 2023.
Over the past year, shares of Devon Energy have plunged 7.6%, lagging behind the S&P 500 Index ($SPX), which has rallied 26.5%, and the Energy Select Sector SPDR Fund (XLE), which has returned 17.4% over the same time frame.
Devon Energy has struggled to keep up with the broader market over the past year due to declining oil prices, which have impacted its revenue and profitability. Additionally, the company has faced operational challenges and increased competition, leading to lower production levels.
On Jan. 14, Devon Energy shares gained over 1% following an upgrade from Benchmark Co., which raised its rating from “Hold” to “Buy” and set a price target of $44.
Analysts' consensus view on DVN stock remains reasonably optimistic, with a "Moderate Buy" rating overall. Among the 26 analysts covering the stock, 16 recommend a "Strong Buy," two "Moderate Buys," and eight give a "Hold" rating. This configuration is slightly more bullish than three months ago, with 13 analysts suggesting a "Strong Buy."
The average analyst price target for DVN is $49.85, suggesting a potential upside of 31.4% from the current levels.
