The 10-second takeaway
For the quarter ended March 31 (Q1), Covanta Holding beat slightly on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped to a loss.
Gross margin dropped, operating margin grew, and net margin dropped.
Covanta Holding tallied revenue of $392.0 million. The seven analysts polled by S&P Capital IQ hoped for sales of $386.5 million on the same basis. GAAP reported sales were 4.0% higher than the prior-year quarter's $376.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.09. The eight earnings estimates compiled by S&P Capital IQ averaged -$0.08 per share. GAAP EPS were -$0.09 for Q1, versus $0.91 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 21.9%, 610 basis points worse than the prior-year quarter. Operating margin was 2.8%, 110 basis points better than the prior-year quarter. Net margin was -3.1%, 3,850 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $415.6 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $1.66 billion. The average EPS estimate is $0.60.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Covanta Holding is outperform, with an average price target of $20.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Covanta Holding. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.