It has been about a month since the last earnings report for Covanta . Shares have lost about 1.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Covanta due for a breakout? 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 Q4 Earnings & Revenues Beat Estimates
Covanta Holding reported earnings of 9 cents per share for fourth-quarter 2020, surpassing the Zacks Consensus Estimate of a cent by 800%. Meanwhile, the bottom line was in line with the year-ago quarter’s tally.
Revenues
In the quarter under review, revenues amounted to $491 million, beating the Zacks Consensus Estimate of $487.5 million by 0.7%. The top line also improved 1.2% year over year, primarily owing to higher waste and service, and energy revenues.
Highlights of the Release
At the end of 2020, the company’s adjusted EBITDA came in at $424 million, down 0.9% from $428 million at 2019 end.
In the reported quarter, Covanta Holding’s total operating expenses summed $478 million, up 8.4% year over year due to higher plant operating expenses.
Interest expenses were $33 million, down 5.7% from the prior-year quarter.
Financial Condition
Covanta Holding had cash and cash equivalents of $55 million as of Dec 31, 2020 compared with $37 million as of Dec 31, 2019.
Long-term debt was $2,396 million as of Dec 31, 2020 compared with $2,366 million as of Dec 31, 2019.
Net cash provided by operating activities in 2020 was $254 million, higher than $226 million in 2019.
2021 Outlook
The company estimated 2021 guidance for adjusted EBITDA in the range of $435-$465 million. Also, it expects free cash flow in the range of $100-$140 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, Covanta has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% 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 trending upward for the stock, and the magnitude of these revisions has been net zero. It comes with little surprise Covanta has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Covanta (CVA) Down 1.7% Since Last Earnings Report?
It has been about a month since the last earnings report for Covanta . Shares have lost about 1.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Covanta due for a breakout? 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 Q4 Earnings & Revenues Beat Estimates
Covanta Holding reported earnings of 9 cents per share for fourth-quarter 2020, surpassing the Zacks Consensus Estimate of a cent by 800%. Meanwhile, the bottom line was in line with the year-ago quarter’s tally.
Revenues
In the quarter under review, revenues amounted to $491 million, beating the Zacks Consensus Estimate of $487.5 million by 0.7%. The top line also improved 1.2% year over year, primarily owing to higher waste and service, and energy revenues.
Highlights of the Release
At the end of 2020, the company’s adjusted EBITDA came in at $424 million, down 0.9% from $428 million at 2019 end.
In the reported quarter, Covanta Holding’s total operating expenses summed $478 million, up 8.4% year over year due to higher plant operating expenses.
Interest expenses were $33 million, down 5.7% from the prior-year quarter.
Financial Condition
Covanta Holding had cash and cash equivalents of $55 million as of Dec 31, 2020 compared with $37 million as of Dec 31, 2019.
Long-term debt was $2,396 million as of Dec 31, 2020 compared with $2,366 million as of Dec 31, 2019.
Net cash provided by operating activities in 2020 was $254 million, higher than $226 million in 2019.
2021 Outlook
The company estimated 2021 guidance for adjusted EBITDA in the range of $435-$465 million. Also, it expects free cash flow in the range of $100-$140 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, Covanta has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% 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 trending upward for the stock, and the magnitude of these revisions has been net zero. It comes with little surprise Covanta has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.