Devon Energy Earnings: Here’s Why the Stock is Falling Now

Devon Energy Corporation (NYSE:DVN) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.02%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Devon Energy Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 37.14% to $0.66 in the quarter versus EPS of $1.05 in the year-earlier quarter.

Revenue: Decreased 21.03% to $1.97 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Devon Energy Corporation reported adjusted EPS income of $0.66 per share. By that measure, the company beat the mean analyst estimate of $0.56. It missed the average revenue estimate of $2.28 billion.

Quoting Management: “Our continued focus on oil production growth is successfully transitioning Devon’s production mix to a higher oil weighting, as evidenced by our first-quarter results. Oil and liquids production, our highest margin products, now account for 41 percent of our total production,” said John Richels, president and chief executive officer. “Driven by our success in the Permian, we are on track to grow our U.S. oil production by almost 40 percent in 2013.”

Key Stats (on next page)…

Revenue decreased 23.6% from $2.58 billion in the previous quarter. EPS decreased 15.38% from $0.78 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.86 to a profit $0.8. For the current year, the average estimate has moved down from a profit of $3.99 to a profit of $3.57 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)