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Covanta Holding Misses on Both Revenue and Earnings

By Seth Jayson - Updated Apr 10, 2017 at 1:51PM

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Just the facts, Fool.

Covanta Holding (NYSE: CVA) reported earnings on April 17. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Covanta Holding missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped. Non-GAAP loss per share grew. GAAP loss per share grew.

Margins shrank across the board.

Revenue details
Covanta Holding recorded revenue of $373.0 million. The nine analysts polled by S&P Capital IQ predicted a top line of $392.4 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.21. The nine earnings estimates compiled by S&P Capital IQ averaged -$0.13 per share. Non-GAAP EPS were -$0.21 for Q1 compared to -$0.09 per share for the prior-year quarter. GAAP EPS were -$0.19 for Q1 compared to -$0.09 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 24.7%, 720 basis points worse than the prior-year quarter. Operating margin was -0.5%, 330 basis points worse than the prior-year quarter. Net margin was -6.7%, 360 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $420.0 million. On the bottom line, the average EPS estimate is $0.12.

Next year's average estimate for revenue is $1.67 billion. The average EPS estimate is $0.47.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Covanta Holding is outperform, with an average price target of $21.55.

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