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Devon Energy Corporation DVN is expected to report an improvement in its top line and a decline in its bottom line when it reports 2024 results on May 6, after market close. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
The Zacks Consensus Estimate for DVN’s first-quarter revenues is pegged at $4.36 billion, indicating growth of 21.31% from the year-ago reported figure.
The Zacks Consensus Estimate for earnings is pegged at $1.27 per share. The Zacks Consensus Estimate for DVN’s first-quarter earnings indicates an increase of 9.48% from the year-ago reported figure.
DVN Earnings Estimates
Image Source: Zacks Investment Research
Earnings Surprise History
DVN’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 8.63%.
Image Source: Zacks Investment Research
What the Zacks Model Unveils
Our model does not conclusively predict a likely earnings beat for DVN this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you can see below.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: DVN has an Earnings ESP of 0.00%.
Zacks Rank: Devon currently carries a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Some stocks in the same sector that have the combination of factors indicating an earnings beat this season are APA Corporation APA, ConocoPhillips COP and Conterra Energy CTRA. APA, COP and CTRA have an Earnings ESP of +5.13%, +1.88% and +2.84%, respectively, and currently carry a Zacks Rank of 3 each.
Factors That May Have Influenced DVN’s Q1 Earnings
Devon Energy is expected to report strong first-quarter earnings, driven by robust production from its diverse multi-basin portfolio, especially the Delaware Basin, resulting in projected production volumes of 805,000 to 825,000 barrels of oil equivalent per day (Boe/d). To protect against market volatility in oil, NGL, and natural gas prices, the company has hedged its 2025 production, which will also support earnings performance in the quarter.
The recent acquisition of Grayson Mill Energy’s Williston Basin assets has enhanced Devon’s operational scale and expanded its economically viable drilling inventory. Collaborations from this transaction are anticipated to have contributed positively to first-quarter results.
Since merging with WPX Energy, Devon Energy has reduced its outstanding debt by $1.5 billion and continues to pursue further debt reduction, effectively lowering annual interest expenses and easing its interest burden, which is expected to benefit earnings.
Devon Energy’s disciplined cost management is helping to control operating expenses. Strong cash flow generation has enabled share repurchases, which are also likely to enhance earnings for the quarter. Devon’s U.S.-centric approach helps avoid many of the geopolitical and regulatory risks, which is likely to have a positive impact on earnings.