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How Did Devon Energy’s 2Q16 Earnings Look?

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Devon Energy beats 2Q16 EPS estimates

Devon Energy (DVN) announced its 2Q16 earnings on August 2, 2016, after markets closed. The company reported an adjusted profit of $0.06 per share in 2Q16, $0.26 better than the Wall Street analyst consensus for a loss of $0.20 per share.

DVN’s 2Q16 EPS (earnings per share) were lower by $0.72 per share when compared with its 2Q15 profit of $0.78 per share. But when compared sequentially with 1Q16, DVN’s 2Q16 EPS were higher by $0.59 per share.

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Devon Energy’s 2Q16 revenues beat estimates

For 2Q16, DVN reported adjusted revenues of ~$2.5 billion, ~8% better than the Wall Street analyst consensus for revenues of ~$2.3 billion. DVN’s 2Q16 revenues are lower by ~27% when compared with 2Q15 revenues of ~$3.4 billion. But when compared sequentially with 1Q16, DVN’s 2Q16 revenues are higher by ~18%.

Devon Energy’s earnings trend

As seen in the above chart, Devon Energy reported much lower EPS (earnings per share) in 2015 due to lower realized crude oil (USO) and natural gas (UNG) prices. In 1Q16, Devon Energy saw its adjusted earnings turn negative for the first time since 1996. Since 2013, Devon Energy has exceeded earnings expectations ~79% of the time.

Since 2013, WPX Energy (WPX), Marathon Oil (MRO), and EOG Resources (EOG) have beat earnings expectations ~38%, ~54%, and ~92% of the time, respectively.

In this series

In this series, we’ll look at Devon Energy’s 2Q16 cash flow, operational performance, Wall Street analyst ratings, price forecast using implied volatility, and how the company’s stock price reacted after beating past earnings estimates.

Now let’s take a look at how much cash Devon Energy generated in 2Q16.

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