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Covanta Holding (CVA) Q3 Earnings & Revenues Beat Estimates

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Covanta Holding Corporation reported earnings of 4 cents per share for third-quarter 2020. The Zacks Consensus Estimate was of a loss of 3 cents per share. However, the bottom line plunged 60% on a year-over-year basis.

Revenues

In the quarter under review, revenues amounted to $491 million, beating the Zacks Consensus Estimate of $465 million by 5.6%. The top line improved year over year, primarily owing to higher water and service, and energy 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

Highlights of the Release

At the end of the third quarter, the company’s adjusted EBITDA came in at $128 million, up 2.4% from the year-ago quarter's $125 million.

In the reported quarter, Covanta Holding’s total operating expenses summed $441 million, up 4.8% year over year on higher plant operating expenses.

Interest expenses were $32 million, down 11.1% from $36 million in the prior-year quarter.

Financial Condition

Covanta Holding had cash and cash equivalents of $34 million as of Sep 30, 2020 compared with $37 million as of Dec 31, 2019.

Long-term debt was $2,417 million as of Sep 30, 2020 compared with $2,366 million as of Dec 31, 2019.

Net cash provided by operating activities at the end of the first nine months of 2020 was $191 million, higher than $112 million at the end of the first nine months of 2019.

Zacks Rank

Covanta Holding currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

WPX Energy, Inc. is slated to release third-quarter 2020 earnings on Nov 2. The Zacks Consensus Estimate for the period’s earnings per share is pegged at 6 cents.

Ormat Technologies, Inc. (ORA - Free Report) is slated to release third-quarter 2020 earnings on Nov 3. The Zacks Consensus Estimate for the period’s earnings per share is pegged at 24 cents.

Evergy Inc. (EVRG - Free Report) is scheduled to release third-quarter 2020 results on Nov 5. The Zacks Consensus Estimate for the period’s earnings per share is pegged at $1.65.

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