Covanta Holding Corporation (CVA) reported earnings from continuing operations of 6 cents per share in the fourth quarter 2014, missing the Zacks Consensus Estimate of 14 cents by 57.1%. The reported number also declined considerably from the year-ago profit of 18 cents a share. The weak performance was mainly due to spiraling expenses.
Total Revenues
Total revenues of $435 million in the quarter however surpassed the Zacks Consensus Estimate of $408 million by 6.6%. The top line increased 3.1% from $422 million a year ago. The improved results were attributable to higher waste and service revenues.
Operating Highlights
Operating expenses in the fourth quarter were $372 million, up 11% from the year-ago quarter primarily due to higher plant operating expenses.
Covanta Holding clocked an operating income of $63 million in the reported quarter, down 27.6% year over year.
Financial Highlights
Cash and cash equivalents as of Dec 31, 2014, were $91 million, up from $195 million as of Dec 31, 2013.
Long-term debts as of Dec 31, 2014, were $1,968 million compared with $1,557 million as of Dec 31, 2013.
Cash flow from operating activities in 2014 was $341 million compared with $316 million in 2013.
Shareholder Returns
Covanta Holding has an impressive dividend payout track record. In 2014, the company increased the annualized dividend by 52% to $1.00 per share and returned $114 million in dividends to shareholders.
Guidance
Covanta Holding expects adjusted earnings before interest, tax, depreciation and amortization in the $450–$490 million range and free cash flow within $200–$240 million.
Other Upcoming Releases
FuelCell Energy Inc. (FCEL) is expected to release fourth quarter earnings on Mar 9. The Zacks Consensus Estimate is currently at a loss of 3 cents.
Hydrogenics Corporation (HYGS) is expected to release fourth quarter earnings on Mar 6. The Zacks Consensus Estimate is currently at 5 cents
Quantum Fuel Systems Technologies Worldwide Inc. (QTWW) is expected to release fourth quarter earnings on Mar 5. The Zacks Consensus Estimate is currently at a loss of 9 cents.
Zacks Rank
Covanta Holding currently carries a Zacks Rank #4 (Sell).
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