Covanta Holding Earnings: Here’s Why the Stock is Up Now

Covanta Holding Corporation (NYSE:CVA) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.42%.

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Covanta Holding Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.21 in the quarter versus EPS of $-0.09 in the year-earlier quarter.

Revenue: Decreased 4.85% to $373 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Covanta Holding Corporation reported adjusted EPS loss of $0.21 per share. By that measure, the company missed the mean analyst estimate of $-0.13. It missed the average revenue estimate of $393.5 million.

Quoting Management: Anthony Orlando, President and Chief Executive Officer stated, “Our organic growth initiatives are on track, we’re seeing the benefit of improving energy markets and our business model remains very stable. As such, I’m confident that we’ll finish the year within our guidance range.” Orlando continued, “We typically conduct a large portion of our scheduled plant maintenance during the first quarter but this year the percentage of our planned work was even higher than last year. Furthermore, we had to make some unplanned repairs which caused additional downtime. The timing of planned maintenance will reverse in the second half and we’re working to offset the impact of the unplanned downtime.”

Key Stats (on next page)…

Revenue decreased 13.26% from $430 million in the previous quarter. EPS decreased to $-0.21 in the quarter versus EPS of $0.20 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.17 to a profit $0.12. For the current year, the average estimate has moved down from a profit of $0.66 to a profit of $0.46 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]