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Devon Energy (DVN) to Post Q1 Earnings: What's in the Offing?
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Devon Energy Corp. (DVN - Free Report) is scheduled to release first-quarter 2020 results on May 5. In the last reported quarter, the company delivered a positive earnings surprise of 13.8%.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors to Consider
Devon Energy’s earnings in the first quarter are expected to have been impacted by an unprecedented drop in commodity prices and demand.
In order to offset the challenges, the company slashed its capital expenditure plan for 2020 by 45% to $1 billion. The company also hedged a substantial portion of oil and gas production to safeguard against fluctuating prices. These initiatives are likely to reflect on first-quarter results, and allow Devon Energy to maintain financial strength and liquidity amid the COVID-19-led crisis.
The company lowered investment in STACK and Power River Basin assets. It funded liquidity needs for capital expenditures through operating cash flows in the first quarter.
Q1 Expectation
The Zacks Consensus Estimate for the bottom line for the first quarter is pegged at a loss of 17 cents per share, indicating a decline of 147.2% from the prior-year reported figure.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Devon Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is the case here as you will see below.
Earnings ESP: The company’s Earnings ESP is +8.88%.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Devon Energy currently carries a Zacks Rank #3.
Other Stocks to Consider
Here are a few other companies worth considering from the same industry that have the right combination of elements to beat on earnings in the upcoming releases.
Comstock Resources, Inc. (CRK - Free Report) is set to release first-quarter results on May 6. It has an Earnings ESP of +2.63% and a Zacks Rank of 3.
Talos Energy Inc. (TALO - Free Report) is set to release first-quarter results on May 6. It has an Earnings ESP of +40.00% and a Zacks Rank of 3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >>
See More Zacks Research for These Tickers
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Devon Energy (DVN) to Post Q1 Earnings: What's in the Offing?
Devon Energy Corp. (DVN - Free Report) is scheduled to release first-quarter 2020 results on May 5. In the last reported quarter, the company delivered a positive earnings surprise of 13.8%.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors to Consider
Devon Energy’s earnings in the first quarter are expected to have been impacted by an unprecedented drop in commodity prices and demand.
In order to offset the challenges, the company slashed its capital expenditure plan for 2020 by 45% to $1 billion. The company also hedged a substantial portion of oil and gas production to safeguard against fluctuating prices. These initiatives are likely to reflect on first-quarter results, and allow Devon Energy to maintain financial strength and liquidity amid the COVID-19-led crisis.
The company lowered investment in STACK and Power River Basin assets. It funded liquidity needs for capital expenditures through operating cash flows in the first quarter.
Q1 Expectation
The Zacks Consensus Estimate for the bottom line for the first quarter is pegged at a loss of 17 cents per share, indicating a decline of 147.2% from the prior-year reported figure.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Devon Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is the case here as you will see below.
Devon Energy Corporation Price and EPS Surprise
Devon Energy Corporation price-eps-surprise | Devon Energy Corporation Quote
Earnings ESP: The company’s Earnings ESP is +8.88%.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Devon Energy currently carries a Zacks Rank #3.
Other Stocks to Consider
Here are a few other companies worth considering from the same industry that have the right combination of elements to beat on earnings in the upcoming releases.
Viper Energy Partners LP (VNOM - Free Report) is set to release first-quarter results on May 5. It has an Earnings ESP of +37.69% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Comstock Resources, Inc. (CRK - Free Report) is set to release first-quarter results on May 6. It has an Earnings ESP of +2.63% and a Zacks Rank of 3.
Talos Energy Inc. (TALO - Free Report) is set to release first-quarter results on May 6. It has an Earnings ESP of +40.00% and a Zacks Rank of 3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>