The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Devon Energy beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share contracted significantly. GAAP earnings per share shrank to a loss.
Margins dropped across the board.
Devon Energy notched revenue of $2.58 billion. The nine analysts polled by S&P Capital IQ predicted a top line of $2.44 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.78. The 26 earnings estimates compiled by S&P Capital IQ predicted $0.76 per share. Non-GAAP EPS of $0.78 for Q4 were 50% lower than the prior-year quarter's $1.55 per share. (The prior-year quarter included -$0.03 per share in earnings from discontinued operations.) GAAP EPS were -$0.89 for Q4 compared to $1.24 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 63.9%, 220 basis points worse than the prior-year quarter. Operating margin was 23.7%, 780 basis points worse than the prior-year quarter. Net margin was -13.8%, 3,260 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.46 billion. On the bottom line, the average EPS estimate is $0.85.
Next year's average estimate for revenue is $10.57 billion. The average EPS estimate is $4.15.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,181 members out of 2,236 rating the stock outperform, and 55 members rating it underperform. Among 524 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 516 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 $71.78.
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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.