S&P 500 (NYSE:SPY) component Devon Energy Corp (NYSE:DVN) will unveil its latest earnings on Wednesday, August 3, 2011. Devon Energy Corporation explores, develops and transports oil, gas, and NGLs. Chesapeake Energy Earnings Cheat Sheet: Strong Revenue Helps Net Income>>
Devon Energy Corp Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.55 per share, a rise of 1.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.52. Between one and three months ago, the average estimate moved up, and has risen from $1.53 during the last month. For the year, analysts are projecting profit of $6.33 per share, a decline of 1.4% from last year.
Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 4 cents, reporting net income of $1.34 per share against a mean estimate of profit of $1.30 per share.
Wall St. Revenue Expectations: On average, analysts predict $2.38 billion in revenue this quarter, a rise of 6.7% from the year ago quarter. Analysts are forecasting total revenue of $9.82 billion for the year, a decline of 1.2% from last year’s revenue of $9.94 billion.
Analyst Ratings: 14 out of 24 analysts surveyed (58.3%) have a buy rating on Devon Energy.. This is below the mean analyst rating of 10 competitors, which average 61.8% buy ratings.
The company has now seen net income fall in each of the last two quarters. In the first quarter, net income fell 65.1% from the year earlier quarter, while the figure dropped 15.7% in the fourth quarter of the last fiscal year.
Revenue has fallen in the past two quarters. In first quarter, revenue declined 17.4% to $2.15 billion from the year earlier quarter. In the fourth quarter of the last fiscal year, the figure fell 6.4%.
Competitors to Watch: Chesapeake Energy Corp. (NYSE:CHK), Anadarko Petroleum Corp. (NYSE:APC), Targa Resources Partners LP (NYSE:NGLS), GeoResources, Inc. (NASDAQ:GEOI), QEP Resources, Inc. (NYSE:QEP), Newfield Exploration Co. (NYSE:NFX), SandRidge Energy Inc. (NYSE:SD), Swift Energy Company (NYSE:SFY), EOG Resources, Inc. (NYSE:EOG), and Gulfport Energy Corp. (NASDAQ:GPOR).
Stock Price Performance: During May 3, 2011 to July 28, 2011, the stock price had fallen $7.16 (-8.2%) from $87.13 to $79.97. The stock price saw one of its best stretches over the last year between October 26, 2010 and November 8, 2010 when shares rose for 10-straight days, rising 10.8% (+$6.93) over that span. It saw one of its worst periods between May 31, 2011 and June 8, 2011 when shares fell for seven-straight days, falling 4.9% (-$4.07) over that span. Shares are up $1.77 (+2.3%) year to date.
(Source: Xignite Financials)