The 10-second takeaway
For the quarter ended June 30 (Q2), Devon Energy beat expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share contracted significantly.
Gross margins improved, operating margins dropped, net margins contracted.
Devon Energy booked revenue of $2.56 billion. The three analysts polled by S&P Capital IQ predicted net sales of $2.46 billion on the same basis. GAAP reported sales were 8.7% lower than the prior-year quarter's $2.80 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.55. The 24 earnings estimates compiled by S&P Capital IQ forecast $0.81 per share. GAAP EPS of $1.18 for Q2 were 82% lower than the prior-year quarter's $6.54 per share. (The prior-year quarter included $6.11 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 71.8%, 420 basis points better than the prior-year quarter. Operating margin was 34.3%, 1,860 basis points worse than the prior-year quarter. Net margin was 18.6%, 7,920 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.61 billion. On the bottom line, the average EPS estimate is $0.98.
Next year's average estimate for revenue is $10.34 billion. The average EPS estimate is $4.11.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,099 members rating the stock outperform and 52 members rating it underperform. Among 445 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 436 give Devon Energy a green thumbs-up, and nine 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 $83.80.
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