The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Devon Energy whiffed on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share dropped to a loss.
Margins contracted across the board.
Devon Energy reported revenue of $1.87 billion. The four analysts polled by S&P Capital IQ expected revenue of $2.32 billion on the same basis. GAAP reported sales were 33% lower than the prior-year quarter's $2.76 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 $0.88. The 24 earnings estimates compiled by S&P Capital IQ forecast $0.69 per share. GAAP EPS were -$1.80 for Q3 versus $2.50 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 55.7%, 850 basis points worse than the prior-year quarter. Operating margin was 3.7%, 5,700 basis points worse than the prior-year quarter. Net margin was -38.6%, 7,620 basis points worse than the prior-year quarter.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,140 members out of 2,196 rating the stock outperform, and 56 members rating it underperform. Among 488 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 479 give Devon Energy a green thumbs-up, and nine give it a red thumbs-down.
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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. 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.