Boston, MA 10/28/2013 (wallstreetpr) – Covanta Holding Corp (NYSE:CVA) posted adjusted per share earnings of $0.28 in Q3.13, beating Zacks’ expectation of $0.27 for the quarter. The latest earnings also indicate a jump of 12% from a year ago where the figure was $0.25 a share.
Due to the impact from small charges and net write off of assets, the waste-to-energy company reported GAAP earnings of $0.22, in the comparable quarter a year ago, the company’s GAAP earnings were $0.19. The difference between GAAP and operating earnings for the Q3 is $0.06. On the revenue front, Covanta reported $427 million for Q3, exceeding Zacks’ estimate by 1.2%. The Q3.13 revenue also indicated a 3.6% growth from the previous year’s similar quarter. The reason for the strong Q3.13 reporting has been given as due to execution of organic growth and higher energy contracts. The figures would have been larger than reported had it not been for the lower revenue earned from service project debt and biomass which essentially offset the top–line increase for the most recently reported quarter.
On the expenses column, the waste-to-energy company incurred higher expenses in the just reported quarter due to amortization expenses as well as plant maintenance and depreciation costs. As such, Q3.13 expenses were up 4.8% to $347 million from a year ago. Consequently, the operating income was lower at $80 million, against $81 million for the comparable quarter a year ago. In the nine months period ending September 30’13, the energy company had $267 million in cash flow against $268 million for the same nine months a year ago. For the Q3, Covanta returned $99 million to investors through shares repurchases and dividend payments. The company is now left with $116 million in shares buyback authorization.
Due to foreseeable challenges in its operations, Covanta has lowered its 2013 full-year earnings estimates. It now has a guidance of between $0.33 and $0.43 against the previous guidance of between $0.40 and $0.50.
At the close of Friday’s trading, the $2.25 billion market capped waste-energy company dropped 2.54% to $17.27.
