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Covanta Holding (CVA) Q3 Earnings Beat Estimates, Up Y/Y

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Covanta Holding Corporation (CVA - Free Report) posted third-quarter 2019 operating earnings of 10 cents per share, which beat the Zacks Consensus Estimate of 4 cents by 150%. The company incurred a loss of 21 cents in the year-ago quarter.

The year-over-year upside reflects solid operations as well as a strong waste market.

Revenues

In the quarter under review, the company's revenues amounted to $465 million, in line with the Zacks Consensus Estimate. The top line increased 2% on a year-over-year basis. The uptick can be attributed to higher Waste and service revenues.

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

 

Operational Update

Covanta Holding’s total operating expenses were $421 million, down 7.3% year over year.

Interest expenses amounted to $36 million, slightly down from the year-ago quarter’s level of $37 million.

Financial Condition

The company had cash and cash equivalents of $65 million as of Sep 30, 2019 compared with $58 million as of Dec 31, 2018.

Long-term debt amounted to $2,457 million as of Sep 30 compared with $2,327 million as of Dec 31, 2018.

Net cash provided by operating activities in the first nine months of 2019 was $112 million, down from $147 million in the year-ago period.

Guidance

Covanta Holding maintained its forecast for 2019 adjusted EBITDA in the range of $420-$445 million and free cash flow in the band of $120-$145 million.

Zacks Rank

Covanta Holding currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Release

NextEra Energy Partners, LP (NEP - Free Report) incurred third-quarter 2019 loss of $1.21 per unit against the Zacks Consensus Estimate of earnings of 62 cents.

Upcoming Releases

Clearway Energy, Inc. (CWEN - Free Report) is scheduled to report third-quarter 2019 results on Nov 6. The Zacks Consensus Estimate for earnings is pegged at 71 cents per share.

Evergy Inc. (EVRG - Free Report) is scheduled to report third-quarter 2019 results on Nov 6. The Zacks Consensus Estimate for earnings is pegged at $ 1.60.

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