Devon Energy Corp. (DVN - Free Report) is scheduled to release fourth-quarter 2019 results on Feb 18. In the last reported quarter, the company delivered a positive earnings surprise of 36.8%.
Let’s see how things have shaped up before the upcoming earnings announcement.
Factors to Consider
Higher production from the Powder River and Delaware basins is likely to have had a positive impact on fourth-quarter average daily oil production. Devon Energy estimates total oil production from retained assets for the fourth quarter of 2019 within 154,000-160,000 barrels per day. Total production for the quarter is expected in the range of 420,000-448,000 barrels of oil equivalent per day.
Fourth-quarter earnings are likely to have benefited from lower shares outstanding, debt reduction and cost-reduction initiatives undertaken by the company.
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 29 cents per share, indicating growth of 190% from the prior-year reported figure.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Devon Energy this time around. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. That is not the case here as you will see below.
Earnings ESP: The company’s Earnings ESP is 0.00%.
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 #2.
Stocks to Consider
Here are a few companies worth considering from the same industry that have the right combination of elements to beat on earnings in the upcoming releases.
Berry Petroleum Corporation (BRY - Free Report) is set to release fourth-quarter results on Feb 26. It has an Earnings ESP of +2.50% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
California Resources Corporation (CRC - Free Report) is slated to release fourth-quarter results on Feb 26. It has an Earnings ESP of +0.51% and a Zacks Rank #2.
WPX Energy Inc. (WPX - Free Report) is set to release fourth-quarter results on Feb 26. It has an Earnings ESP of +0.23% and a Zacks Rank of 2.
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