The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Devon Energy met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, and GAAP earnings per share shrank slightly.
Gross margins shrank, operating margins improved, and net margins shrank.
Devon Energy recorded revenue of $2.59 billion. The five analysts polled by S&P Capital IQ looked for net sales of $2.58 billion on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $2.20 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.55. The 19 earnings estimates compiled by S&P Capital IQ averaged $1.47 per share on the same basis. GAAP EPS of $1.26 for Q4 were 1.6% lower than the prior-year quarter's $1.28 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 66.1%, 40 basis points worse than the prior-year quarter. Operating margin was 28.9%, 130 basis points better than the prior-year quarter. Net margin was 18.8%, 680 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.38 billion. On the bottom line, the average EPS estimate is $1.43.
Next year's average estimate for revenue is $10.48 billion. The average EPS estimate is $6.43.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,026 members rating the stock outperform and 49 members rating it underperform. Among 571 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 563 give Devon Energy a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Devon Energy is outperform, with an average price target of $88.96.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Devon Energy. Motley Fool newsletter services have recommended buying shares of Devon Energy. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.