Devon Energy Corporation (DVN), an independent energy company with a market cap of $30.2 billion, operates in the exploration, development, and production of oil, natural gas, and natural gas liquids within the U.S. The Oklahoma-based company is expected to unveil its fiscal Q2 earnings results after the market closes on Tuesday, Aug. 6.
Prior to the event, analysts anticipate DVN to report a profit of $1.29 per share, up 9.3% from $1.18 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in each of the past four quarters. The company reported an EPS of $1.16, exceeding the consensus EPS estimate by 5.5% in the most recent quarter due to higher production from the Delaware basin.
For fiscal 2024, analysts expect DVN to report EPS of $5.40, down 5.4% from $5.71 in fiscal 2023. However, looking forward to fiscal 2025, EPS is expected to surge by a 14.6% margin, reaching $6.19.
On a YTD basis, DVN's shares have risen 5.4%, underperforming the S&P 500 Index's ($SPX) 15.4% gain and the S&P 500 Energy Sector SPDR's (XLE) 10.2% increase over the same period.
Despite beating Q1 profit estimates, shares of Devon Energy fell 1.5% on May 1 due to the significant decline in realized natural gas prices and concerns about the oversupply in the natural gas market. In addition, the company missed out on another acquisition target, with Marathon Oil agreeing to a $22.5 billion deal with ConocoPhillips. This prompted the company to explore alternatives like Ovintiv, Permian Resources, and Civitas Resources to enhance its scale and cash flow.
Analysts' consensus rating on Devon Energy stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 25 analysts covering the stock, opinions include 14 "Strong Buys," two "Moderate Buys," and nine "Holds." This consensus is slightly more bullish than three months ago, with 13 analysts suggesting a "Strong Buy."
The average analyst price target for DVN is $57.58, suggesting a modest potential upside of 20.6% from current levels.
On the date of publication, Sohini Mondal 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.
