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Covanta Holding's (CVA) Q3 Earnings & Revenues Beat Mark

Covanta Holding (CVA) posts better-than-expected third-quarter 2021 results. Also, both the bottom and the top line rise on a year-over-year basis.

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This story originally appeared on Zacks

Covanta Holding Corporation CVA posts third-quarter earnings of 22 cents per share, outperforming the Zacks Consensus Estimate of 18 cents by 22.2%. The bottom line also surged from the year-ago quarter’s tally by 450%.

- Zacks

Revenues

In the quarter under review, revenues amounted to $539 million, beating the Zacks Consensus Estimate of $516 million by 4.5%. The top line also improved 9.8% year over year, primarily owing to higher waste, 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 third quarter, the company’s adjusted EBITDA came in at $169 million, up 32% from $128 million in the prior-year quarter.

In the reported quarter, Covanta Holding’s total operating expenses summed $465 million, up 5.4% year over year.

Interest expenses were $31 million, down 3.1% from the prior-year quarter’s reading.

Financial Condition

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

Long-term debt was $2,338 million as of Sep 30, 2021 compared with $2,396 million as of Dec 31, 2020.

Net cash provided by operating activities in the first nine months of 2021 was $247 million, higher than $191 million in the comparable period of last year.

Deal Update

Covanta Holding’s decision to sell all its shares to EQT Infrastructure received shareholder approval on Oct 12. The deal is expected to close by this year-end, contingent onfinal regulatory approvals. The company’s UK construction and commissioning activities are also moving ahead per plans.

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.

Peer Release

NextEra Energy Partners, LP NEP reported earnings of 24 cents per unit for third-quarter 2021, lagging the Zacks Consensus Estimate of 64 cents by 62.5%.

Upcoming Results

Evergy Inc. EVRG is scheduled to release third-quarter 2021 results on Nov 3, 2021. The Zacks Consensus Estimate for earnings per share is pegged at $1.68.

Clearway Energy, Inc. CWEN is scheduled to announce third-quarter 2021 results on Nov 4. The Zacks Consensus Estimate for earnings per share is pegged at 70 cents.



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Covanta Holding Corporation (CVA): Free Stock Analysis Report

 

NextEra Energy Partners, LP (NEP): Free Stock Analysis Report

 

Evergy Inc. (EVRG): Free Stock Analysis Report

 

Clearway Energy, Inc. (CWEN): Free Stock Analysis Report

 

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