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How Has Devon Energy’s Stock Price Reacted to Past Results?

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Devon Energy’s stock price action

After losing ~77% of its market capitalization between June 2014 and February 2016, Devon Energy’s (DVN) stock price is finally showing signs of a new uptrend. In April 2016 Devon Energy’s stock crossed the 200-day moving average for the first time in the last year and is currently trading ~15% above it. Since February 2016, Devon Energy’s stock price has risen by a whopping ~124%.

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Devon Energy’s relative performance

Recently, DVN has shown better relative strength than other crude oil (USO) and natural gas (UNG) producers. In the last three months, Devon Energy’s stock price has increased by ~19%, whereas the SPDR S&P Oil and Gas Exploration & Production ETF (XOP) has risen by ~6%.

Devon Energy’s year-to-date performance

For 2016, DVN is outperforming bigger upstream companies from the S&P 500 (SPY). DVN is up by ~21%, whereas bigger oil and gas producers Occidental Petroleum (OXY) and EOG Resources (EOG) are up by ~16% and ~18%, respectively. ConocoPhillips (COP) is down by ~8% for 2016.

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Devon Energy’s stock price performance after past results

Devon Energy reported its 1Q16 earnings after the market close, on May 3, 2016. In 1Q16, excluding one-time items, Devon Energy (DVN) reported EPS (earnings per share) of -$0.53 per share, $0.10 better than the estimate of -$0.63 per share. Following the earnings release, the better-than-expected earnings led to Devon Energy’s stock price falling by ~10% in four sessions.

DVN reported its 4Q15 earnings after the market close, on February 16, 2015. In 4Q15, excluding one-time items, DVN reported EPS of $0.77 per share, $0.06 better than the estimated EPS of $0.71 per share. Following the earnings release, the better-than-expected earnings led to Devon Energy’s stock price falling by ~14% in three sessions.

A contrarian reaction occurred after the 2Q15 earnings release as well, when Devon Energy’s stock price decreased by ~25% in three weeks, even after beating the consensus earnings estimates by $0.35 per share. DVN’s 3Q15 post-earnings release reaction was positive, with its stock price increasing by ~6% in five sessions after beating the earnings estimates by $0.24 per share. However, considering the magnitude of the beat, the reaction was muted.

After the 1Q15 earnings release, Devon Energy’s stock price reacted negatively, with a decline of ~3% in two weeks. This was mainly due to the $0.03 per share miss on the earnings estimates.

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