Devon Energy Corporation Earnings: Profitable With Double-Digit Revenue Growth

Rising costs hurt S&P 500 (NYSE:SPY) component Devon Energy Corporation (NYSE:DVN) in the fourth quarter as profit dropped from a year earlier. Devon Energy explores, develops and transports oil, gas, and NGLs.

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Devon Energy Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Devon Energy Corporation fell to $507 million ($1.25 per share) vs. $562 million ($1.32 per share) a year earlier. This is a decline of 9.8% from the year earlier quarter.

Revenue: Rose 21.1% to $2.58 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Devon Energy Corporation reported adjusted net income of $1.55 per share. By that measure, the company beat the mean estimate of $1.48 per share. Analysts were expecting revenue of $2.59 billion.

Quoting Management: “Devon delivered an outstanding performance in 2011. We drove production from our North American onshore asset base up eight percent, increased proved reserves to an all-time high and completed our highly-successful strategic repositioning, including $3.5 billion of share repurchases,” commented John Richels, president and chief executive officer.

Key Stats:
The company has now topped analyst estimates for the last four quarters.  It beat the mark by 6 cents in the third quarter, by 15 cents in the second quarter, and by 4 cents in the first quarter.
The company has now seen net income fall in each of the last two quarters. In the third quarter, net income fell 50.3% from the year earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from $1.61 a share to $1.47 over the last sixty days. For the fiscal year, the average estimate has moved up from $5.96 a share to $6.05 over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com