It has been about a month since the last earnings report for Covanta . Shares have added about 46.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Covanta due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Covanta Holding Incurs Wider-Than-Expected Loss in Q1
Covanta Holding incurred a loss of 24 cents per share in first-quarter 2020, which was wider than the Zacks Consensus Estimate of a loss of 22 cents. The figure compares unfavourably with earnings of 3 cents in the year-ago quarter.
Revenues
In the quarter under review, Covanta Holding’s revenues amounted to $468 million. The figure beat the Zacks Consensus Estimate of $457 million by 2.4%. The top line also increased 3.3% on a year-over-year basis.
Highlights of The Release
At the end of the first quarter, the company’s EBITDA amounted to $97 million compared with $84 million a year ago.
In the reported quarter, Covanta Holding’s total adjusted operating expenses amounted to $480 million, up 4.12% year over year.
Interest expenses were $34 million, down 5.5% from $36 million in the prior-year quarter.
Financial Condition
Covanta Holding had cash and cash equivalents of $42 million as of Mar 31, 2020 compared with $37 million as of Dec 31, 2019.
Long-term and project debt was $2,407 million as of Mar 31, 2020 compared with $2,336 million as of Dec 31, 2019.
Net cash from operating activities at the end of the first quarter of 2020 was $61 million, higher than $37 million at the end of the first quarter of 2019.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted 7.81% due to these changes.
VGM Scores
At this time, Covanta has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Covanta has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Covanta (CVA) Up 46.9% Since Last Earnings Report?
It has been about a month since the last earnings report for Covanta . Shares have added about 46.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Covanta due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Covanta Holding Incurs Wider-Than-Expected Loss in Q1
Covanta Holding incurred a loss of 24 cents per share in first-quarter 2020, which was wider than the Zacks Consensus Estimate of a loss of 22 cents. The figure compares unfavourably with earnings of 3 cents in the year-ago quarter.
Revenues
In the quarter under review, Covanta Holding’s revenues amounted to $468 million. The figure beat the Zacks Consensus Estimate of $457 million by 2.4%. The top line also increased 3.3% on a year-over-year basis.
Highlights of The Release
At the end of the first quarter, the company’s EBITDA amounted to $97 million compared with $84 million a year ago.
In the reported quarter, Covanta Holding’s total adjusted operating expenses amounted to $480 million, up 4.12% year over year.
Interest expenses were $34 million, down 5.5% from $36 million in the prior-year quarter.
Financial Condition
Covanta Holding had cash and cash equivalents of $42 million as of Mar 31, 2020 compared with $37 million as of Dec 31, 2019.
Long-term and project debt was $2,407 million as of Mar 31, 2020 compared with $2,336 million as of Dec 31, 2019.
Net cash from operating activities at the end of the first quarter of 2020 was $61 million, higher than $37 million at the end of the first quarter of 2019.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted 7.81% due to these changes.
VGM Scores
At this time, Covanta has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, Covanta has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.