Earnings Previews: Devon Energy, Lucid, Palantir

In the first half-hour of Friday trading, the Dow Jones industrials were up 1.16%, the S&P 500 up 1.09% and the Nasdaq 1.11% higher.

After U.S. markets closed on Thursday, Apple beat analysts’ estimates on both the top and bottom lines, even though revenue was 2.5% lower than in the year-ago quarter. Mac sales fell by about $3.2 billion, accounting for more than all of the year-over-year decline. iPhone and iPad sales both came in higher than estimates. To top it all off, Apple increased its dividend by 4% and added a $90 billion share buyback. Shares traded up 4.5% in the early going Friday.

Block also reported earnings per share (EPS) and revenue that beat consensus estimates. Yet, the stock traded down about 2.1%.

Before markets opened on Friday, AMC reported a smaller-than-expected loss per share on better-than-expected revenue. The stock traded down about 3%.

Enbridge beat the consensus EPS estimate by a penny but missed on revenue. Shares traded up 1.7%.

Warner Bros. Discovery posted a steeper loss than analysts were expecting and also fell short on revenue. Ad sales for the company’s cable networks were down 15% year over year. Shares traded down 3.5% early Friday.

There are no earnings reports scheduled for release Friday afternoon. Before markets open on Monday, BioNTech and Tyson Foods will report quarterly results.

Here is a look at three companies set to report results later on Monday.

Devon Energy

Devon Energy Inc. (NYSE: DVN) is among the country’s 10 largest independent producers of oil and natural gas. The company has seen its share price drop by nearly 29% over the past 12 months, including a drop of almost a third in the past six months. Falling commodity prices have certainly hurt, but a bigger threat is a possible lowering of Devon’s massive dividend yield.

Analysts remain bullish on the stock, with 17 of 31 having a Buy or Strong Buy rating. Another 13 have Hold ratings. At a recent price of around $48.00 a share, the upside potential based on a median price target of $65.45 is 36.4%. At the high target of $87.00, the upside potential is 81.3%.

ALSO READ: 5 ‘Strong Buy’ Dow Dividend Leaders That Worried Investors Are Snapping Up Now

Consensus estimates call for fourth-quarter revenue of $3.82 billion, which would be down 11.2% sequentially and essentially flat year over year. Adjusted EPS are forecast at $1.39, down 16.1% sequentially and by 26.1% year over year. For the full 2023 fiscal year, Devon is expected to post EPS of $6.58, down 20.8%, on revenue of $16.24 billion, down 15.3%.

Devon’s stock trades at 7.3 times expected 2023 EPS, 6.8 times estimated 2024 earnings of $7.10 and 7.2 times estimated 2025 earnings of $6.68 per share. Its 52-week trading range is $44.03 to $79.40. Devon pays an annualized dividend of $5.06 (yield of 10.32%). Total shareholder return for the past year was negative 22.96%.

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