The 10-second takeaway
For the quarter ended March 31 (Q1), Devon Energy whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Devon Energy booked revenue of $1.97 billion. The four analysts polled by S&P Capital IQ wanted to see net sales of $2.40 billion on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $2.35 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 $0.66. The 26 earnings estimates compiled by S&P Capital IQ predicted $0.56 per share. Non-GAAP EPS of $0.66 for Q1 were 37% lower than the prior-year quarter's $1.05 per share. (The prior-year quarter included -$0.05 per share in earnings from discontinued operations.) GAAP EPS were -$3.34 for Q1 versus $0.97 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 55.0%, 930 basis points worse than the prior-year quarter. Operating margin was 5.9%, much worse than the prior-year quarter. Net margin was -67.9%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.62 billion. On the bottom line, the average EPS estimate is $0.80.
Next year's average estimate for revenue is $10.82 billion. The average EPS estimate is $3.60.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,166 members out of 2,228 rating the stock outperform, and 62 members rating it underperform. Among 468 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 459 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 $71.02.
Is Devon Energy the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.
- Add Devon Energy to My Watchlist.