Devon Energy
The 10-second takeaway
For the quarter ended March 31 (Q1), Devon Energy missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share was unchanged.
Gross margins contracted, operating margins expanded, net margins shrank.
Revenue details
Devon Energy reported revenue of $2.50 billion. The four analysts polled by S&P Capital IQ expected revenue of $2.77 billion on the same basis. GAAP reported sales were 7.9% higher than the prior-year quarter's $2.32 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $1.05. The 23 earnings estimates compiled by S&P Capital IQ predicted $1.42 per share. GAAP EPS of $0.97 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 66.4%, 90 basis points worse than the prior-year quarter. Operating margin was 28.4%, 150 basis points better than the prior-year quarter. Net margin was 15.7%, 230 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $2.78 billion. On the bottom line, the average EPS estimate is $1.43.
Next year's average estimate for revenue is $11.39 billion. The average EPS estimate is $6.19.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,072 members rating the stock outperform and 51 members rating it underperform. Among 477 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 470 give Devon Energy a green thumbs-up, and seven 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 $88.02.
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