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Will Devon Energy Report Higher Profits in Q2 2018?

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Devon Energy’s Q2 2018 net income estimates

Devon Energy (DVN) is expected to report its Q2 2018 earnings on July 31 after the market closes. For Q2 2018, excluding any one-time items, the current consensus net income estimate for Devon Energy is ~$177 million, which is almost the same as its adjusted net income in Q2 2017. However, on a sequential basis and excluding any one-time items, DVN’s Q2 2018 consensus net income estimate is ~64% higher than its profit of ~$108 million in Q1 2018.

So, based on the current consensus net income estimate, DVN is expected to report its ninth consecutive quarterly profit in Q2 2018.

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Devon Energy’s Q2 2018 EPS estimates

For Q2 2018, excluding any one-time items, Wall Street analysts’ current consensus EPS estimate for DVN is $0.34. On a year-over-year basis, Devon Energy’s Q2 2018 current consensus EPS estimate is the same as its adjusted EPS in Q2 2017. Sequentially, DVN’s Q2 2018 current consensus EPS estimate is higher than its $0.14 in Q1 2018.

DVN’s peer Marathon Oil (MRO), which operates in unconventional US resources, is expected to report the net profit of ~$163 million in Q2 2018, much better than its loss last year of ~$128 million. Occidental Petroleum (OXY) and Diamondback Energy (FANG) are expected to report ~679% and ~26% year-over-year increases in their profits in Q2 2018, respectively, whereas Energen (EGN) is expected to report a ~1251% year-over-year increase in its profits in Q2 2018. Like DVN, the above peers operate in the Permian Basin.

In this series

Having analyzed DVN’s Q2 2018 earnings expectations, in this series, we’ll also look at DVN’s revenues expectations, production guidance, cash flow estimates, and odds of beating EPS expectations.

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