Devon Energy Corp. Earnings: Revenue and Profit Decline

S&P 500 (NYSE:SPY) component Devon Energy Corporation (NYSE:DVN) posted a decrease in profit as revenue declined. Devon Energy explores, develops and transports oil, gas, and NGLs.

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Devon Energy Earnings Cheat Sheet for the Second Quarter

Results: Net income for the oil-US export and production fell to $477 million ($1.18 per share) vs. $2.74 billion ($6.48 per share) a year earlier. This is a decline of 82.6% from the year-earlier quarter. A one-time gain of $2.5 billion enhanced the company’s second-quarter 2011 earnings.

Revenue: Fell 92.1% to $255.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Devon Energy Corporation reported adjusted net income of 55 cents per share. By that measure, the company fell short of mean estimate of 88 cents per share. It fell short of the average revenue estimate of $2.58 billion.

Key Stats:

The company has now seen net income fall in each of the last four quarters. In the first quarter, net income fell 5.5% while the figure fell 9.8% in the fourth quarter of the last fiscal year and 50.3% in the third quarter of the last fiscal year.

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the third quarter of the last fiscal year, which saw revenue rise 48.8%.

For two quarters in a row, the company has come in under analyst estimates. In the first quarter, it missed expectations by 39 cents with net income of $1.05 versus a mean estimate of net income of $1.44 per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the third quarter is $1.07 per share, down from $1.63 ninety days ago. For the fiscal year, the average estimate has moved down from $6.26 a share to $4.17 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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