Covanta Holding (NYSE: CVA) is expected to report Q2 earnings on July 17. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Covanta Holding's revenues will compress -1.8% and EPS will contract -66.7%.

The average estimate for revenue is $402.7 million. On the bottom line, the average EPS estimate is $0.05.

Revenue details
Last quarter, Covanta Holding reported revenue of $373.0 million. GAAP reported sales were 4.8% lower than the prior-year quarter's $392.0 million.

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

EPS details
Last quarter, non-GAAP EPS came in at -$0.21. GAAP EPS were -$0.19 for Q1 versus -$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.

Recent performance
For the preceding 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.

Looking ahead

The full year's average estimate for revenue is $1.63 billion. The average EPS estimate is $0.42.

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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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.