Devon Energy Corporation DVN is expected to report a year-over-year decline in its top and bottom lines when it reports third-quarter 2024 results on Nov. 5, after the market close.

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The Zacks Consensus Estimate for DVN’s third-quarter revenues is pegged at $3.86 billion, indicating a 2% decline from the year-ago reported figure.

The consensus estimate for earnings is pegged at $1.06 per share. The Zacks Consensus Estimate for DVN’s third-quarter earnings has declined 18.46% in the past 60 days. The estimate suggests a year-over-year decline of 35.8%.

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Solid Earnings Surprise History

Devon’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 5.49%.

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What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Devon Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you can see below.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: Devon has an Earnings ESP of -0.70%.

Zacks Rank: Devon Energy currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Have Shaped DVN’s Q2 Earnings

Devon continues to benefit from its multi-basin portfolio and high-margin assets. Increased productivity from the wells placed online during the first nine months of 2024 is likely to have been a primary contributor to strong production volumes. The acquisition of Grayson Mill Energy during the quarter is going to boost the company’s production volumes.

Third-quarter earnings are expected to have benefited from effective cost management, which is likely to keep operating expenses within the guidance level and boost margins. Devon also achieved prominent operational efficiencies in Delaware in the first half of 2024, which is expected to have continued in the third quarter as well, boosting the performance of the company.

Stable free cash flow generation is expected to have continued in the third quarter as well, which assisted in increasing shareholders’ value. The ongoing share repurchases have lowered the shares outstanding level of the company, which is likely to have had a positive impact on third-quarter earnings.

DVN’s Price Performance and Valuation

DVN’s shares have declined 23.2% in the past six months compared with the industry’s drop of 5.1%.