Covanta Holding (CVA) Q2 Loss Narrows, Revenues Beat Mark

Zacks

Covanta Holding Corporation CVA incurred second-quarter 2018 loss of a penny per share, narrower than the Zacks Consensus Estimate of a loss of 10 cents by 90%. The second quarter loss was also narrower than the year-ago quarter’s loss of 22 cents.

Revenues

In the quarter under review, Covanta Holding’s revenues logged $454 million, beating the Zacks Consensus Estimate of $452 million by 0.8%. Also, the top line improved 7.1% on a year-over-year basis.

Covanta Holding Corporation Price, Consensus and EPS Surprise

Operational Update

In the reported quarter, Covanta Holding’s total adjusted operating expenses were $472 million, up16.8% year over year.

Interest expenses were $36 million, up 2.9% year over year.

Financial Condition

Covanta Holding had cash and cash equivalents of $39 million as of Jun 30, 2018 compared with $46 million as of Dec 31, 2017.

Long-term and project debt was $2,432 million as of Jun 30, 2018 compared with $2,490 million as of Dec 31, 2017.

Net cash from operating activities at the end of the first half of 2018 was $63 million, higher than $27 million in the year-ago period.

In the first half of 2018, the company’s total capital expenditure was $130 million compared with $152 million in the prior-year period.

Guidance

Covanta Holding reaffirms its adjusted EBITDA view of $425-$455 million for 2018 and cash available for distribution (CAFD) in the range of $70-$100 million.

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

Ormat Technologies, Inc. ORA is scheduled to report second-quarter 2018 results on Aug 7. The company has an Earning ESP of +3.38% and a Zacks Rank #2.

Eclipse Resources Corporation ECR is scheduled to report second-quarter 2018 results on Aug 1. The company has an Earning ESP of +30.55% and a Zacks Rank #1.

Nustar Energy L.P. NS is scheduled to report second-quarter 2018 results on Aug 7. The company has an Earning ESP of +29.29% and a Zacks Rank of 1.

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