Zacks Research Decreases Earnings Estimates for Devon Energy

Key Points

• Zacks Research cut Devon Energy’s Q2 2026 EPS estimate to $1.04 from $1.35, while keeping a Strong-Buy rating on the stock. The firm also projected FY2026 EPS of $3.99 and FY2027 EPS of $4.10.
• Devon’s latest quarterly results missed expectations, with EPS of $1.04 versus the $1.06 consensus and revenue of $3.81 billion versus $4.34 billion expected. Revenue also fell 14.5% year over year.
• The company recently raised its quarterly dividend to $0.32 per share from $0.24, signaling continued shareholder returns despite recent analyst estimate cuts.

Devon Energy Corporation (NYSE:DVN - Free Report) - Stock analysts at Zacks Research cut their Q2 2026 EPS estimates for Devon Energy in a report released on Tuesday, May 19th. Zacks Research analyst Team now forecasts that the energy company will post earnings per share of $1.04 for the quarter, down from their previous estimate of $1.35. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Devon Energy's current full-year earnings is $5.25 per share. Zacks Research also issued estimates for Devon Energy's Q3 2026 earnings at $1.03 EPS, Q4 2026 earnings at $0.89 EPS, FY2026 earnings at $3.99 EPS, Q2 2027 earnings at $1.04 EPS, Q3 2027 earnings at $1.06 EPS, Q4 2027 earnings at $1.00 EPS, FY2027 earnings at $4.10 EPS and FY2028 earnings at $4.03 EPS.

Devon Energy (NYSE:DVN - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The energy company reported $1.04 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.06 by ($0.02). The business had revenue of $3.81 billion for the quarter, compared to the consensus estimate of $4.34 billion. Devon Energy had a net margin of 13.71% and a return on equity of 15.22%. The company's revenue was down 14.5% on a year-over-year basis. During the same period in the previous year, the firm earned $0.82 EPS.

Several other analysts also recently commented on the stock. Wall Street Zen downgraded shares of Devon Energy from a "buy" rating to a "hold" rating in a research report on Sunday, May 17th. Wells Fargo & Company upped their price objective on Devon Energy from $66.00 to $68.00 and gave the stock an "overweight" rating in a report on Monday. Raymond James Financial raised shares of Devon Energy from an "outperform" rating to a "strong-buy" rating and set a $72.00 price target for the company in a report on Tuesday, May 5th. Truist Financial initiated coverage on shares of Devon Energy in a research note on Tuesday, March 24th. They set a "buy" rating and a $63.00 price objective for the company. Finally, Wolfe Research boosted their target price on Devon Energy from $64.00 to $65.00 and gave the company an "outperform" rating in a research report on Monday, April 6th. Four equities research analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $57.30.

Devon Energy Stock Down 2.7%

DVN stock opened at $47.17 on Friday. The company has a quick ratio of 0.94, a current ratio of 1.01 and a debt-to-equity ratio of 0.48. Devon Energy has a twelve month low of $30.24 and a twelve month high of $52.71. The stock has a market cap of $29.31 billion, a P/E ratio of 13.14 and a beta of 0.43. The business's 50-day moving average price is $48.10 and its 200-day moving average price is $41.91.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in DVN. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in shares of Devon Energy in the fourth quarter worth about $25,000. Accredited Wealth Management LLC boosted its stake in Devon Energy by 61.6% during the 3rd quarter. Accredited Wealth Management LLC now owns 808 shares of the energy company's stock worth $28,000 after purchasing an additional 308 shares during the last quarter. Ameriflex Group Inc. grew its stake in Devon Energy by 702.0% during the 3rd quarter. Ameriflex Group Inc. now owns 802 shares of the energy company's stock valued at $28,000 after acquiring an additional 702 shares in the last quarter. MV Capital Management Inc. acquired a new stake in shares of Devon Energy in the fourth quarter valued at approximately $29,000. Finally, Garton & Associates Financial Advisors LLC acquired a new stake in shares of Devon Energy in the 4th quarter worth $29,000. Hedge funds and other institutional investors own 69.72% of the company's stock.

Insider Buying and Selling at Devon Energy

In related news, EVP Jeffrey L. Ritenour sold 70,029 shares of the company's stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $46.66, for a total transaction of $3,267,553.14. Following the transaction, the executive vice president directly owned 428,452 shares of the company's stock, valued at $19,991,570.32. This represents a 14.05% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, SVP Adam M. Vela sold 24,342 shares of the company's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $47.21, for a total transaction of $1,149,185.82. Following the transaction, the senior vice president owned 130,540 shares in the company, valued at approximately $6,162,793.40. This trade represents a 15.72% decrease in their position. The SEC filing for this sale provides additional information. 0.71% of the stock is owned by insiders.

Devon Energy Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th will be issued a $0.32 dividend. This is an increase from Devon Energy's previous quarterly dividend of $0.24. This represents a $1.28 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend is Monday, June 15th. Devon Energy's dividend payout ratio is presently 26.74%.

More Devon Energy News

Here are the key news stories impacting Devon Energy this week:

• Positive Sentiment: Devon Energy expanded its Delaware Basin footprint by buying 16,300 net undeveloped acres in New Mexico for about $2.6 billion, a move expected to add roughly 400 drilling locations, extend inventory life, and support future production growth. Reuters: Devon boosts Delaware Basin footprint with $2.6 billion land acquisition
• Positive Sentiment: Devon was reported as the biggest buyer in a record U.S. oil and gas lease auction, signaling an aggressive push to lock in high-quality acreage and strengthen its long-term asset base. Seeking Alpha: Devon Energy biggest buyer in record $4B U.S. oil and gas auction
• Positive Sentiment: Morgan Stanley raised its price target on DVN to $66 from $59 and reiterated an overweight rating, implying further upside from recent levels. MarketScreener: Morgan Stanley adjusts Devon Energy price target
• Positive Sentiment: Other analysts also sounded constructive, with Zacks raising near-term EPS estimates and maintaining a strong-buy view, while earlier coverage from Jefferies and Wells Fargo pointed to additional catalysts. TipRanks: Devon Energy expands Delaware Basin position with major acquisition
• Neutral Sentiment: Jim Cramer also publicly highlighted Devon Energy as a stock to buy, adding to the recent positive attention on the name. Yahoo Finance: Jim Cramer on Devon Energy
• Negative Sentiment: Energy stocks were generally lower on Thursday, which likely weighed on Devon Energy despite the company-specific positives. Yahoo Finance: Sector Update Energy Stocks Decline Thursday Afternoon

Devon Energy Company Profile

Devon Energy Corporation NYSE: DVN is an independent oil and gas exploration and production company headquartered in Oklahoma City, Oklahoma. The company focuses on the exploration, development, production and marketing of hydrocarbons, including crude oil, natural gas liquids (NGLs) and natural gas. Devon operates as an upstream energy company that acquires, evaluates and develops onshore resource plays using a combination of drilling, completion and production optimization techniques.

Core business activities include identifying and developing energy reserves, operating well programs and managing reservoir performance to generate production and cash flow.

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