Devon Energy Underperforms, Drops 2.22% as Q4 EPS Forecast Slumps 30%
Devon Energy shares fell 2.22% to $43.96, underperforming the S&P 500’s 1.57% loss, after gaining 18.6% YTD. Wall Street forecasts Q4 EPS of $0.81 (-30%) on $4.03B revenue (-8.5%), with oil revenue seen at $2.22B (-11%) and realized oil price at $61.97.
1. Stock Underperformance Details
On February 12, Devon Energy shares closed at $43.96, down 2.22% versus the prior session, underperforming the S&P 500’s 1.57% slide, the Dow’s 1.34% loss and the Nasdaq’s 2.04% drop. Year to date, the stock had risen 18.6%, outpacing the Oils-Energy sector’s 16.6% gain.
2. Q4 Earnings and Revenue Forecast
Wall Street consensus estimates forecast Q4 EPS of $0.81, a 30.2% decline from the year-ago quarter, on projected revenue of $4.03 billion, down 8.5% year over year. These estimates have been revised 11.6% lower over the past 30 days as analysts adjust expectations.
3. Segment Outlook
Analysts expect oil revenues of $2.22 billion (-11.1%), gas revenues of $261 million (+59.2%), NGL revenues of $392 million (-8.7%) and marketing and midstream revenues of $1.41 billion (+0.9%). Realized oil price is forecast at $61.97 per barrel versus $69.19 in the prior-year quarter.
4. Analyst Revisions and Valuation
Devon Energy carries a Zacks Rank of #4 (Sell) with consensus EPS estimates down 5% recently and a forward P/E of 12.96 below the industry average of 13.63. Its PEG ratio stands at 3.95 versus the sector’s 1.6 and the Oil & Gas E&P industry ranks in the bottom 7%.