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Covanta Holding's (CVA) Earnings and Revenues Beat in Q1

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Covanta Holding Corporation (CVA - Free Report) reported earnings of a cent per share for first-quarter 2021. The Zacks Consensus Estimate was of a loss of 17 cents per share. Also, the bottom line rebounded from the year-ago quarter’s loss of 24 cents per share.

Revenues

In the quarter under review, revenues amounted to $498 million, beating the Zacks Consensus Estimate of $472 million by 5.5%. The top line also improved 6.4% year over year, primarily owing to higher waste and service, and energy revenues.

Highlights of the Release

In the first quarter, the company’s adjusted EBITDA came in at $106 million, up 9.3% from $97 million in the prior-year quarter.

In the reported quarter, Covanta Holding’s total operating expenses summed $484 million, up 0.8% year over year.

Interest expenses were $31 million, down 8.8% from the prior-year quarter.

Covanta Holding Corporation Price, Consensus and EPS Surprise

Covanta Holding Corporation Price, Consensus and EPS Surprise

Covanta Holding Corporation price-consensus-eps-surprise-chart | Covanta Holding Corporation Quote

Financial Condition

Covanta Holding had cash and cash equivalents of $56 million as of Mar 31, 2021 compared with $55 million as of Dec 31, 2020.

Long-term debt was $2,411 million as of Mar 31, 2021 compared with $2,396 million as of Dec 31, 2020.

Net cash provided by operating activities in the first three months of 2021 was $52 million, lower than $61 million in the comparable period of last year.

2021 Outlook

The company lifted its 2021 guidance for adjusted EBITDA in the range of $460-$480 million from $435-$465 million. Also, it improved free cash flow expectation from the range of $100-$140 million to $125-$155 million.

Zacks Rank

Covanta Holding currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Releases

Evergy Inc. (EVRG - Free Report) is scheduled to release first-quarter 2021 results on May 6, 2021. The Zacks Consensus Estimate for 2021 earnings has moved 0.6% north in the past 60 days.

Ormat Technologies Inc. (ORA - Free Report) is likely to come up with an earnings beat when it reports first-quarter results on May 5, 2021. The Zacks Consensus Estimate for 2021 earnings has been revised 6.9% upward in the past 60 days.

EOG Resources (EOG - Free Report) is expected to deliver an earnings beat when it reports first-quarter results on May 7, 2021. The Zacks Consensus Estimate for 2021 earnings has moved 50% up in the past 60 days.

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