Oklahoma City, Oklahoma-based Devon Energy Corporation (DVN) is an independent energy company that explores, develops, and produces oil, natural gas, and natural gas liquids. Valued at a market cap of $20.2 billion, the company's oil and gas operations are mainly concentrated in the onshore areas of North America, primarily in the U.S. It is expected to announce its fiscal Q1 earnings for 2025 after the market closes on Tuesday, May 6.
Prior to this event, analysts project this energy company to report a profit of $1.25 per share, up 7.8% from $1.16 per share in the year-ago quarter. The company has a solid trajectory of consistently beating Wall Street’s bottom-line estimates in each of the last four quarters. Its earnings of $1.16 per share in the previous quarter outpaced the consensus estimates by a notable margin of 16%.
For the full year, analysts expect DVN to report EPS of $4.54, down 5.8% from $4.82 in fiscal 2024. Nonetheless, its EPS is expected to marginally increase year over year to $4.55 in fiscal 2026.
Shares of DVN have declined 40.2% over the past 52 weeks, considerably underperforming both the S&P 500 Index's ($SPX) 5.5% gain, and the Energy Select Sector SPDR Fund’s (XLE) 14.9% loss over the same time frame.
On Feb. 18, DVN released its better-than-expected Q4 earnings results, prompting its shares to increase 7.7% in the following trading session. Robust rise in the company’s oil, gas and NGL sales coupled with an increase in its marketing and midstream revenues resulted in a 6.2% year-over-year growth in its overall revenues to $4.4 billion. The top-line figure surpassed the consensus estimates by 3.8%. Additionally, its adjusted EBITDAX rose 12.9% year-over-year to $2.1 billion, reflecting improved operational efficiency and profitability. Adjusted EPS came in at $1.16, exceeding Wall Street expectations by a solid 16%, which likely further fueled investor optimism.
Wall Street analysts are moderately optimistic about DVN’s stock, with a "Moderate Buy" rating overall. Among 26 analysts covering the stock, 16 recommend "Strong Buy," two suggest “Moderate Buy,” and eight advise “Hold.” The mean price target for DVN is $44.08, which indicates a notable 41.3% potential upside from the current levels.
On the date of publication, Neharika Jain 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.
