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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