Devon Energy Corporation, listed as NYSE
VN, is a prominent player in the energy sector, primarily engaged in the exploration, development, and production of oil and natural gas. The company is set to release its quarterly earnings on February 18, 2025. Analysts predict earnings per share (EPS) of $1 and revenue of approximately $4.25 billion for the quarter.
The anticipated EPS of $1 represents a 29.1% decrease from the previous year, as highlighted by Zacks. Despite this decline, Devon Energy's revenue is expected to grow by 2.2%, reaching $4.24 billion. This growth is attributed to strong production from high-margin domestic assets and effective cost management strategies.
Over the past 30 days, there has been an 11.3% upward revision in the consensus EPS estimate, indicating a positive shift in analysts' expectations. This trend is significant as empirical research shows a strong correlation between earnings estimate revisions and short-term stock price performance. Devon Energy has a history of surpassing earnings estimates, with an average earnings surprise of 4.99% over the last four quarters.
Devon Energy's financial metrics reveal a price-to-earnings (P/E) ratio of 6.33 and a price-to-sales ratio of 1.50. The enterprise value to sales ratio is 2.07, while the enterprise value to operating cash flow ratio is 4.66. The company has an earnings yield of 15.80%, which is attractive to investors seeking returns. However, Devon Energy's high debt-to-equity ratio of 645.23 indicates significant leverage, which could pose risks if not managed effectively.
