Devon Energy to Report Q2 Earnings: How Should You Play the Stock?

Devon Energy Corporation DVN is expected to register an improvement in the top line and a decline in the bottom line when it reports second-quarter 2025 results on Aug. 5, after market close. The company reported a negative earnings surprise of 4.72% in the last reported quarter.Let us focus on how things might have shaped up for the company this season.Factors That Might Have Influenced DVN’s Q2 EarningsDevon Energy is predicted to deliver solid second-quarter results, supported by strong production across its diverse multi-basin portfolio, particularly from the Delaware Basin, which has contributed to elevated output levels. To mitigate market volatility in oil, natural gas liquids (“NGL”) and natural gas prices, the company has hedged its second-quarter 2025 production, providing additional stability to its earnings performance.Devon Energy’s disciplined approach to cost management has effectively kept operating expenses in check. Robust cash flow generation has supported share repurchase efforts, which are expected to have further boosted quarterly earnings. Additionally, the company’s U.S.-focused operations shield it from many geopolitical and regulatory risks. This is likely to have contributed positively to its second-quarter earnings performance.The company has been working on restructuring NGL contracts to improve price realizations and enhancing downstream oil realizations with expanding access to export markets, which is expected to have a positive impact on earnings.Q2 ExpectationDevon Energy expects its second-quarter production volume to be in the range of 810-828 thousand barrels of oil equivalents per day (Mboe/d). The Zacks Consensus Estimate for second-quarter production volume is pegged at 817.7 Mboe/d, which indicates year-over-year growth of 15.7%.The Zacks Consensus Estimate for DVN’s second-quarter revenues is pegged at $4.01 billion, indicating growth of 2.46% from the year-ago reported figure.The Zacks Consensus Estimate for earnings is pegged at 83 cents per share. The consensus mark for DVN’s second-quarter earnings indicates a decline of 41.13% from the year-ago reported figure.What the Zacks Model UnveilsOur model does not conclusively predict a likely earnings beat for DVN 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 not the case here, as you can see below.Devon Energy Corporation Price and EPS Surprise Devon Energy Corporation price-eps-surprise | Devon Energy Corporation QuoteYou can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.DVN’s Earnings ESP: DVN has an Earnings ESP of 0.00%.DVN’s Zacks Rank: Devon currently carries a Zacks Rank #3.Stocks to Consider This SeasonHere are some stocks in the same sector that have the combination of factors indicating an earnings beat this season.ARRAY Technologies, Inc. ARRY is expected to beat second-quarter earnings estimates when it reports results on Aug. 7, 2025.  The company currently has an Earnings ESP of +76.19% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.Long-term (three to five years) earnings growth of the company is pegged at 21.63%. The Zacks Consensus Estimate of ARRY’s 2025 and 2026 earnings per share indicates year-over-year growth of 10% and 35.35% respectively.Plains GP Holdings PAGP is expected to beat second-quarter earnings estimates when it reports results on Aug. 8, 2025.  The firm currently has an Earnings ESP of +50.00% and sports a Zacks Rank #1.The Zacks Consensus Estimate of PAGP’s 2025 and 2026 earnings per unit indicates year-over-year growth of 205.77% and 23.79% respectively.HighPeak Energy, Inc. HPK is expected to beat second-quarter earnings estimates when it reports results on Aug. 11, 2025.  The company currently has an Earnings ESP of +58.33% and a Zacks Rank #2.The Zacks Consensus Estimate of HPK’s 2025 and 2026 earnings per share indicates year-over-year growth of 2.99% and 3.62% respectively. Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Devon Energy Corporation (DVN): Free Stock Analysis Report Array Technologies, Inc. (ARRY): Free Stock Analysis Report Plains Group Holdings, L.P. (PAGP): Free Stock Analysis Report HighPeak Energy, Inc. (HPK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks