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What's in Store for Devon Energy (DVN) in Q4 Earnings?
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Devon Energy Corporation (DVN - Free Report) will release fourth-quarter 2016 financial results on Feb 14 after the market closes. Last quarter, this independent energy company reported a positive earnings surprise of 80.0%. Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Devon has divested assets worth $3.2 billion during 2016 and its top-line production from the retained assets is expected to range between 524,000 and 546,000 Boe per day in the fourth quarter. Devon had planned to increase its rig activity in the U.S. from three operated rigs running in 2016 to 10 operated rigs by 2017 year end.
Oil price has recovered from its historic low level and is hovering in the range of $50 per barrel. The gradual recovery in prices will boost the top line of the company.
Devon plans to continue with its cost reduction initiatives in the to-be-reported quarter as well. The company aims to save costs of around $1 billion in 2017.
Earnings Whispers
Our proven model does not conclusively show that Devon Energy is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: Earnings ESP, the difference between the Most Accurate estimate and the Zacks Consensus Estimate is at 0.00%, as both estimates are pegged at 19 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter
Zacks Rank: Devon Energy carries a Zacks Rank #3. Though the Zacks Rank #3 increases the possibility of a beat, its 0.00% ESP makes a surprise prediction difficult.
Note that we caution against Sell-rated stocks (#4 or #5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few players in the Oils-Energy sector that have the right combination of elements to post an earnings beat this quarter.
EOG Resources Inc. (EOG - Free Report) has an Earnings ESP of +6.67% and a Zacks Rank #3. It is expected to report fourth-quarter earnings on Feb 27.
Concho Resources Inc. has an Earnings ESP of +33.33% and a Zacks Rank #3. It is slated to report fourth-quarter earnings on Feb 21.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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What's in Store for Devon Energy (DVN) in Q4 Earnings?
Devon Energy Corporation (DVN - Free Report) will release fourth-quarter 2016 financial results on Feb 14 after the market closes. Last quarter, this independent energy company reported a positive earnings surprise of 80.0%. Let’s see how things are shaping up prior to this announcement.
Factors to Consider
Devon has divested assets worth $3.2 billion during 2016 and its top-line production from the retained assets is expected to range between 524,000 and 546,000 Boe per day in the fourth quarter. Devon had planned to increase its rig activity in the U.S. from three operated rigs running in 2016 to 10 operated rigs by 2017 year end.
Oil price has recovered from its historic low level and is hovering in the range of $50 per barrel. The gradual recovery in prices will boost the top line of the company.
Devon plans to continue with its cost reduction initiatives in the to-be-reported quarter as well. The company aims to save costs of around $1 billion in 2017.
Earnings Whispers
Our proven model does not conclusively show that Devon Energy is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below.
Devon Energy Corporation Price and EPS Surprise
Devon Energy Corporation Price and EPS Surprise | Devon Energy Corporation Quote
Zacks ESP: Earnings ESP, the difference between the Most Accurate estimate and the Zacks Consensus Estimate is at 0.00%, as both estimates are pegged at 19 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter
Zacks Rank: Devon Energy carries a Zacks Rank #3. Though the Zacks Rank #3 increases the possibility of a beat, its 0.00% ESP makes a surprise prediction difficult.
Note that we caution against Sell-rated stocks (#4 or #5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few players in the Oils-Energy sector that have the right combination of elements to post an earnings beat this quarter.
Northern Oil & Gas ( (NOG - Free Report) is expected to report fourth-quarter 2016 earnings on Mar 1. It has an Earnings ESP of +25.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
EOG Resources Inc. (EOG - Free Report) has an Earnings ESP of +6.67% and a Zacks Rank #3. It is expected to report fourth-quarter earnings on Feb 27.
Concho Resources Inc. has an Earnings ESP of +33.33% and a Zacks Rank #3. It is slated to report fourth-quarter earnings on Feb 21.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>