In the latest trading session, Devon Energy (DVN) closed at $34.22, marking a +0.74% move from the previous day. The stock's change was less than the S&P 500's daily gain of 1.04%. On the other hand, the Dow registered a gain of 0.77%, and the technology-centric Nasdaq increased by 1.51%.Heading into today, shares of the oil and gas exploration company had lost 11.61% over the past month, lagging the Oils-Energy sector's loss of 1.08% and the S&P 500's gain of 3.92% in that time.The investment community wil ...

Core Viewpoint - Devon Energy Corporation (DVN) is anticipated to show an increase in revenues but a decrease in earnings when it reports its 2024 results on February 18, after market close [1]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for DVN's fourth-quarter revenues is $4.24 billion, reflecting a growth of 2.2% compared to the previous year [2]. - The Zacks Consensus Estimate for earnings is $1.00 per share, indicating a decline of 29.08% from the year-ago figure [2]. - For the current quarter (ending December 2024), the Zacks Consensus Estimate for earnings is $1.00, with a year-over-year growth estimate of -29.08% [3]. - The number of estimates for the current quarter is 9, with a high estimate of $1.08 and a low estimate of $0.94 [3]. Earnings Surprise History - DVN has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 4.99% [4][5]. Earnings Prediction Model - The model predicts a likely earnings beat for DVN, supported by a positive Earnings ESP of +3.11% and a Zacks Rank of 3 (Hold) [6]. Factors Influencing Q4 Earnings - Devon's multi-basin portfolio and high-margin assets are expected to contribute positively to earnings [8]. - The acquisition of Grayson Mill Energy is projected to significantly increase production volumes from the Williston Basin, tripling to 150,000 Boe/d [8]. - Fourth-quarter production volumes are expected to be between 811,000 and 830,000 Boe/d, benefiting from hedging against price fluctuations [9]. - The company has reduced its outstanding debt by $1.5 billion, which is likely to lower annual interest expenses and boost earnings [10]. - Effective cost management and cash flow generation have allowed for share buybacks, positively impacting earnings [11]. Price Performance and Valuation - DVN shares have decreased by 13.7% over the past three months, compared to a 20.1% decline in the industry [14]. - The current trailing 12-month EV/EBITDA for DVN is 4.16X, significantly lower than the industry average of 11.39X, indicating relative undervaluation [15]. Investment Thesis - Devon's productive multi-basin assets and the acquisition of Grayson Mill Energy are expected to sustain high-margin production and strong free cash flow [17]. - The company is focused on reducing debt and lowering interest expenses, which will enhance financial flexibility [17]. - The competitive oil and gas industry may pose challenges for Devon in acquiring new drilling rights or properties [18]. Summary - Devon's high-quality domestic assets and balanced exposure to oil, natural gas, and NGL production, along with a low-cost production structure, are expected to enhance margins [19]. - The company is currently trading at a discount, making it an attractive option for investors [19].

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The market expects Devon Energy (DVN) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on February 18, 2025, might help the stock move higher if these key numbers ...

WTI crude oil got off to a hot start in 2025. “Black gold” rallied sharply from near $70 in mid-December to above $80 for a moment just before President Trump’s inauguration. Oil has given back just about allFreelance Financial Writer | Investments | Markets | Personal Finance | RetirementI create written content used in various formats including articles, blogs, emails, and social media for financial advisors and investment firms in a cost-efficient way. My passion is putting a narrative to financial data. ...

Core Insights - Devon Energy (DVN) is well-positioned to continue its earnings-beat streak in upcoming reports, with a history of surpassing earnings estimates, particularly in the last two quarters, averaging a surprise of 6.54% [1][3] Earnings Performance - In the last reported quarter, Devon Energy achieved earnings of $1.10 per share, exceeding the Zacks Consensus Estimate of $1.06 per share, resulting in a surprise of 3.77% [2] - In the previous quarter, the company reported earnings of $1.41 per share against an expected $1.29 per share, delivering a surprise of 9.30% [2] Earnings Estimates - There has been a favorable change in earnings estimates for Devon Energy, with a positive Earnings ESP (Expected Surprise Prediction) indicating potential for an earnings beat, supported by a solid Zacks Rank [3][6] - The current Earnings ESP for Devon Energy stands at +0.97%, suggesting increased analyst optimism regarding its near-term earnings potential [6] Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise, indicating a strong likelihood of beating consensus estimates [4] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [5]

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Core Viewpoint - Devon Energy's stock has shown resilience, outperforming both the S&P 500 and the Oils-Energy sector over the past month, despite anticipated declines in earnings for the upcoming quarter [1][2]. Company Performance - Devon Energy closed at $37.18, reflecting a +1.12% change from the previous session, outperforming the S&P 500's gain of 0.12% [1]. - Over the past month, shares of Devon Energy have appreciated by 12.83%, while the Oils-Energy sector has seen a loss of 8.42% and the S&P 500 has declined by 3.45% [1]. Upcoming Financial Results - The company is set to announce its earnings on February 18, 2025, with projected earnings of $1 per share, indicating a year-over-year decline of 29.08% [2]. - The consensus estimate for quarterly revenue is $4.26 billion, which represents a 2.7% increase from the same period last year [2]. Analyst Estimates and Ratings - Recent changes to analyst estimates for Devon Energy are crucial as they reflect the evolving business trends, with positive revisions indicating confidence in the company's performance [3]. - The Zacks Rank system, which assesses estimate changes, currently ranks Devon Energy as 3 (Hold), with a consensus EPS projection that has moved 3.53% lower in the past 30 days [4][5]. Valuation Metrics - Devon Energy is trading at a Forward P/E ratio of 7.83, which is below the industry average of 10.03, suggesting it is undervalued compared to its peers [6]. - The company has a PEG ratio of 1.19, slightly below the industry average PEG ratio of 1.23, indicating a favorable valuation in relation to its projected earnings growth [7]. Industry Context - The Oil and Gas - Exploration and Production - United States industry, which includes Devon Energy, has a Zacks Industry Rank of 141, placing it in the bottom 44% of over 250 industries [8]. - Historically, industries in the top 50% of the Zacks Industry Rank outperform those in the bottom half by a factor of 2 to 1 [8].

Core Viewpoint - Devon Energy Corporation's shares have shown a positive performance recently, gaining 12.8% in a month, outperforming the industry and sector averages, but the stock has declined 11% over the past year, indicating a gradual recovery path [1][3]. Performance Analysis - Devon's stock has outperformed the Zacks Oil & Gas- Exploration and Production- United States industry's return of 9.7% and the broader Zacks Oil and Energy sector's decline of 6.5% in the last month [1]. - Over the past year, Devon's stock has declined by 11%, while EQT Corporation, a peer in the industry, saw a more significant decline of 34.8% [3]. Technical Indicators - Devon's stock is currently trading above its 50-day simple moving average (SMA), indicating a bullish trend [6]. - The 50-day SMA serves as a key indicator for traders and analysts to identify support and resistance levels [9]. Operational Strengths - Devon's multi-basin portfolio and focus on high-quality assets are enhancing its production capabilities [10]. - The recent acquisition of Grayson Mill Energy is expected to triple total production volume to 150,000 barrels of oil equivalent per day from the previously expected 50,000 Boe/d [11]. - Devon's assets are capable of sustaining production levels for over 10 years, supported by ongoing exploration activities [12]. Cost Management - Devon's low-cost operations have improved its margins, with production costs averaging $11.39 per Boe in Q3 2024, a 7% decline from the prior period [13][14]. Financial Performance - Devon has consistently exceeded earnings estimates, with an average positive earnings surprise of 4.99% over the last four quarters [15]. - The company's return on invested capital (ROIC) stands at 8.16%, outperforming the industry average of 6.4%, indicating efficient investment [16]. Valuation Metrics - Devon's shares are trading at a relative discount, with a trailing 12-month EV/EBITDA of 4.41X compared to the industry average of 7.31X [19]. Earnings Outlook - The Zacks Consensus Estimate for Devon's earnings per share for 2024 and 2025 has decreased by 2.07% and 5.62%, respectively, over the past 60 days [21]. Summary - Devon Energy has a balanced exposure to oil, natural gas, and NGL production, with a low-cost production structure that enhances margins. The multi-basin assets contribute to free cash flow and strengthen the balance sheet. Despite its strong ROIC and relative discount, the declining earnings estimates suggest that investors may want to wait for a better entry point [22].