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What to Expect from Devon Energy’s 3Q16 Earnings

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Devon Energy’s 3Q16 revenue estimates

Devon Energy (DVN) is set to report its 3Q16 earnings on November 1, 2016, after the markets close. For 3Q16, Wall Street analysts expect Devon Energy to report revenues of ~$2.7 billion, which is ~26% lower when compared with 3Q15 revenues of ~$3.6 billion.

But when compared sequentially with 2Q16, Devon Energy’s 3Q16 revenues expectations are higher by ~2%.

Due to the steep downward trend in energy prices, upstream companies CONSOL Energy (CNX), Murphy Oil (MUR), and Range Resources (RRC) are expecting ~27%, ~30%, and ~24% year-over-year declines in their 3Q16 revenues, respectively. The Energy Select Sector SPDR ETF (XLE) generally invests at least 95% of its total assets in oil and gas companies.

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Devon Energy’s 3Q16 EPS estimates

For 3Q16, Wall Street analysts expect Devon Energy to report an adjusted profit of $0.06 per share, which is lower by $0.70 per share when compared with 3Q15 profits of $0.76 per share. But when compared sequentially with 2Q16, DVN’s 3Q16 earnings expectations are almost flat.

Devon Energy’s 3Q16 EBITDA estimates

For 3Q16, Wall Street analysts expect Devon Energy to report EBITDA (earnings before interest, tax, depreciation, and amortization) of ~$693 million, which is lower by ~49% when compared with 3Q15 adjusted EBITDA of ~$1.4 billion. But when compared sequentially with 2Q16, DVN’s 3Q16 EBITDA expectations are higher by ~36%.

In this series

In this series, we’ll also look at Devon Energy’s earnings trend, production guidance, what Wall Street analysts are saying about Devon Energy ahead of its earnings, and how DVN’s stock price reacted to past earnings.

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