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Covanta Holding (CVA) Posts Loss in Q2 But Beats on Revenues

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Covanta Holding Corporation incurred a loss of 14 cents per share for second-quarter 2021, wider than the Zacks Consensus Estimate of a loss of 3 cents as well as the year-ago quarter’s loss of 10 cents.

Revenues

In the quarter under review, revenues amounted to $506 million, beating the Zacks Consensus Estimate of $496 million by 2%. The top line also improved 11.5% year over year, primarily owing to higher waste and service, energy and materials sales 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

In the second quarter, the company’s adjusted EBITDA came in at $110 million, up 14.6% from $96 million in the prior-year quarter.

In the reported quarter, Covanta Holding’s total operating expenses summed $481 million, up 10.3% year over year.

Interest expenses were $32 million, down 5.9% from the prior-year quarter’s reading.

Financial Condition

Covanta Holding had cash and cash equivalents of $54 million as of Jun 30, 2021 compared with $55 million as of Dec 31, 2020.

Long-term debt was $2,375 million as of Jun 30, 2021 compared with $2,396 million as of Dec 31, 2020.

Net cash provided by operating activities in the first six months of 2021 was $157 million, higher than $155 million in the comparable period of last year.

Deal Update

In July 2021, Covanta Holding inked a deal to sell all its shares to EQT Infrastructure for $5.3 billion including the net debt obligations. The transaction is contingent on the company’s shareholders’ and customary government approvals, and is likely to be complete in the fourth quarter of the ongoing year. Keeping this in view, the company did not provide any guidance for the current year.

Zacks Rank

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

Other Releases

NextEra Energy Partners, LP (NEP - Free Report) incurred a loss of 97 cents per unit for the second quarter of 2021. The Zacks Consensus Estimate was for earnings of 67 cents.

FuelCell Energy, Inc. (FCEL - Free Report) incurred second-quarter fiscal 2021 net loss of 6 cents per share, wider than the Zacks Consensus Estimate of a loss of 5 cents.

Upcoming Result

Evergy Inc. (EVRG - Free Report) is scheduled to release second-quarter 2021 results on Aug5, 2021. The Zacks Consensus Estimate for 2021 earnings has moved 0.9% north in the past 60 days.


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