Brokerages Expect Covanta Holding Corp (NYSE:CVA) to Post -$0.22 EPS

Brokerages predict that Covanta Holding Corp (NYSE:CVA) will report earnings per share of ($0.22) for the current fiscal quarter, Zacks reports. Three analysts have issued estimates for Covanta’s earnings. The highest EPS estimate is ($0.15) and the lowest is ($0.27). Covanta reported earnings per share of ($0.16) in the same quarter last year, which would suggest a negative year-over-year growth rate of 37.5%. The firm is expected to announce its next quarterly earnings results on Thursday, July 23rd.

According to Zacks, analysts expect that Covanta will report full-year earnings of ($0.37) per share for the current financial year, with EPS estimates ranging from ($0.42) to ($0.33). For the next year, analysts forecast that the business will report earnings of ($0.16) per share, with EPS estimates ranging from ($0.25) to ($0.07). Zacks Investment Research’s earnings per share averages are an average based on a survey of research analysts that that provide coverage for Covanta.

Covanta (NYSE:CVA) last posted its quarterly earnings results on Thursday, May 7th. The energy company reported ($0.24) EPS for the quarter, missing analysts’ consensus estimates of ($0.22) by ($0.02). The company had revenue of $468.00 million during the quarter, compared to the consensus estimate of $458.18 million. Covanta had a negative return on equity of 7.34% and a negative net margin of 1.43%. The company’s revenue for the quarter was up 3.3% compared to the same quarter last year. During the same period last year, the firm posted $0.03 EPS.

A number of equities research analysts have issued reports on the stock. BMO Capital Markets lowered their target price on shares of Covanta to $7.00 and set a “market perform” rating on the stock in a report on Sunday, April 19th. UBS Group raised shares of Covanta from a “neutral” rating to a “buy” rating and lowered their target price for the company from $14.00 to $13.00 in a report on Wednesday, May 13th. Stifel Nicolaus raised shares of Covanta from a “sell” rating to a “hold” rating and set a $9.50 target price on the stock in a report on Sunday, May 10th. ValuEngine raised shares of Covanta from a “hold” rating to a “buy” rating in a report on Wednesday, March 18th. Finally, Zacks Investment Research cut shares of Covanta from a “hold” rating to a “sell” rating and set a $10.00 target price on the stock. in a report on Thursday, June 11th. One research analyst has rated the stock with a sell rating, six have given a hold rating and three have given a buy rating to the company. The stock currently has an average rating of “Hold” and an average target price of $11.44.

In other news, Director Ronald J. Broglio sold 6,000 shares of the business’s stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of $9.78, for a total transaction of $58,680.00. Following the completion of the transaction, the director now directly owns 13,567 shares in the company, valued at approximately $132,685.26. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 11.10% of the stock is owned by insiders.

A number of large investors have recently made changes to their positions in the stock. Sunbelt Securities Inc. purchased a new position in Covanta in the fourth quarter worth $2,597,000. Victory Capital Management Inc. boosted its position in Covanta by 3.2% during the fourth quarter. Victory Capital Management Inc. now owns 22,962 shares of the energy company’s stock valued at $341,000 after buying an additional 715 shares during the period. Amalgamated Bank boosted its position in Covanta by 5.1% during the fourth quarter. Amalgamated Bank now owns 22,032 shares of the energy company’s stock valued at $327,000 after buying an additional 1,060 shares during the period. Kingsview Wealth Management LLC boosted its position in Covanta by 9.4% during the first quarter. Kingsview Wealth Management LLC now owns 20,079 shares of the energy company’s stock valued at $172,000 after buying an additional 1,729 shares during the period. Finally, Rhumbline Advisers boosted its position in Covanta by 1.1% during the fourth quarter. Rhumbline Advisers now owns 166,918 shares of the energy company’s stock valued at $2,477,000 after buying an additional 1,855 shares during the period. Institutional investors own 72.41% of the company’s stock.

Shares of NYSE:CVA traded up $0.12 during mid-day trading on Tuesday, reaching $9.49. The company had a trading volume of 40,799 shares, compared to its average volume of 1,101,844. The company’s 50-day moving average price is $9.20 and its 200-day moving average price is $11.51. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 8.35. Covanta has a one year low of $6.57 and a one year high of $18.24. The firm has a market cap of $1.24 billion, a price-to-earnings ratio of -45.10 and a beta of 1.23.

The company also recently declared a quarterly dividend, which will be paid on Friday, July 10th. Stockholders of record on Friday, June 26th will be given a dividend of $0.08 per share. The ex-dividend date of this dividend is Thursday, June 25th. This represents a $0.32 dividend on an annualized basis and a dividend yield of 3.37%. Covanta’s dividend payout ratio (DPR) is currently 457.14%.

About Covanta

Covanta Holding Corporation, through its subsidiaries, provides waste and energy services to municipal entities primarily in the United States and Canada. It owns and operates infrastructure for the conversion of waste to energy, as well as engages in related waste transport and disposal, and other renewable energy production businesses.

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