Devon Energy to Report Q4 Earnings: What's in Store This Season?

Devon Energy Corporation DVN is expected to register a decline in the top line and a decline in the bottom line when it reports fourth-quarter 2025 results on Feb. 17, after market close. The Zacks Consensus Estimate is currently pegged at 86 cents per share.The Zacks Consensus Estimate for fourth-quarter earnings estimates have declined 10.4% over the past 60 days. The bottom-line projection indicates a decrease of 25.9% from the year-ago number.Image Source: Zacks Investment ResearchDVN Stock’s Earnings Surprise HistoryDevon Energy’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, resulting in an average surprise of 6.08%.Image Source: Zacks Investment ResearchWhat the Zacks Model Unveils for DVNOur model does not conclusively predict an 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 -5.48%.DVN’s Zacks Rank: Devon currently carries a Zacks Rank #4 (Sell).Stocks to Consider This SeasonHere are some stocks in the same sector that have the combination of factors indicating an earnings beat this season.Sunrun RUN, South Bow Corporation SOBO and Cameco CCJ possess the right combination of two factors to report an earnings beat this season.RUN, SOBO and CCJ’s Earnings ESP are currently pegged at +87.34%, +2.99% and +2.35%, respectively. The stocks currently carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.Factors That Might Have Influenced DVN’s Q4 EarningsDevon Energy continues to generate significant free cash flow through its efficient operations. DVN is utilizing it to strengthen its balance sheet, pay dividends and buy back shares, which is likely to have a positive impact on fourth-quarter earnings.DVN’s cost management initiatives are likely to have lowered operating costs and likely to have a positive impact on earnings. To mitigate market volatility in oil, natural gas liquids (“NGL”) and natural gas prices, the company has hedged its fourth-quarter 2025 production, providing additional stability to its earnings performance.DVN’s U.S.-centric operations have insulated it from significant geopolitical and regulatory risks, which are likely to have benefited its fourth-quarter performance.Devon Energy has completed some strategic acquisitions, which further expanded its operations and contributed to production volumes. The synergies from acquired assets are likely to have a positive impact on fourth-quarter earnings.Q4 Expectation From DVNDevon Energy expects its fourth-quarter production volume to be in the range of 828-844 thousand barrels of oil equivalents per day (Mboe/d). The Zacks Consensus Estimate for fourth-quarter production volume is pegged at 841.1 Mboe/d, which indicates a year-over-year decline of 0.8%.DVN Stock Trades at a DiscountDevon’s shares are inexpensive on a relative basis, with its current trailing 12-month Enterprise Value/Earnings before Interest, Tax, Depreciation and Amortization (EV/EBITDA TTM) being 4.45X compared with its industry average of 10.89X.Image Source: Zacks Investment ResearchDevon Stock Returns Better Than IndustryThe return on equity (“ROE”) measures how well a company generates returns on the money it invests. ROE helps to figure out how the company is utilizing the shareholders’ funds to generate returns.Devon’s ROE has outperformed the industry average in the trailing 12 months. ROE of DVN was 18.14% compared with the industry average of 16.18%DVN’s ROEImage Source: Zacks Investment ResearchZacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>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 Cameco Corporation (CCJ): Free Stock Analysis Report Sunrun Inc. (RUN): Free Stock Analysis Report South Bow Corporation (SOBO): 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