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Is a Beat in Store for Covanta Holding (CVA) in Q4 Earnings?

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Covanta Holding Corporation (CVA - Free Report) is scheduled to release fourth-quarter 2019 earnings on Feb 20 2020, after market close. The company delivered a positive earnings surprise of 150% in the last reported quarter.

Covanta Holding has trailing four-quarter positive earnings surprise of 37.03%, on average.

What Does the Zacks Model Say?

Our proven model predicts an earnings beat for Covanta Holding this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: The company’s Earnings ESP is +42.86%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Covanta Holding carries a Zacks Rank #2.

Covanta Holding Corporation Price and EPS Surprise

 

Covanta Holding Corporation Price and EPS Surprise

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

 

Factors at Play

Covanta Holding is likely to have registered tip fee volume growth in the soon-to-be-reported quarter. Also in the last reported quarter, the company recorded tip fee volume growth, which is expected to have made a positive impact on fourth-quarter earnings.

During third-quarter earnings call, the company stated that increased sales of separated heavy metals in the fourth quarter will improve non-ferrous pricing.

Covanta Holding is expected to have registered substantial improvement in free cash flow in the fourth quarter which is a fairly typical seasonal pattern for the company.

Which Way are Estimates Treading?

The Zacks Consensus Estimate for fourth-quarter 2019 earnings and revenues is pegged at 7 cents per share and $478.87 million, respectively. The top line indicates a year-over-year decline of 4.23%, while the bottom line suggests year-over-year rise of 75%.

Stocks to Consider

Here are some other companies from the sector that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this season.

California Resources Corporation (CRC - Free Report) is slated to release fourth-quarter results on Feb 26. It has an Earnings ESP of +0.51% and a Zacks Rank #2.

Berry Petroleum Corporation (BRY - Free Report) is scheduled to announce fourth-quarter results on Feb 26. It has an Earnings ESP of +2.50% and a Zacks Rank #1.

Cimarex Energy Co (XEC - Free Report) is set to release fourth-quarter results on Feb 19. It has an Earnings ESP of +1.45% and a Zacks Rank #3.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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