Boston, MA 10/25/2013 (wallstreetpr) – When Covanta Holding Corp (NYSE:CVA) lowered its 2013 full-year guidance, the market reacted negatively on the day that followed, sending its stock tumbling with huge margins to the south. On Thursday, October 24, the waste-to-energy company dipped by 12.4% to close the day at $17.72. This followed its Q3.13 reporting and revising of full-year guidance. The New Jersey-based waste-energy company now targets $0.33 and $0.43 in per share earnings in its new guidance. Previously it forecasted to hit per share earnings in the range of $0.40 and $0.50. By revising its 2013 guidance, CVA is likely to miss the analysts’ expectation of $0.44 per share earning. In comparison, CVA’s full-year per share earnings for 2012 was $0.52. It now means that if it were to hit its highest target for this year, it would still be $0.02 shy of its earnings a year ago.
So what is the company’s mandarins saying over the 2013 guidance lowering? The company points out three key and convicting factors and these include: reduced demand for steam which it says is lower than had been anticipated, slower organic growth which is again beyond the anticipation and then the unscheduled outages. These factors combined, the CEO Anthony Orlando says cast an unattractive shadow on the company’s 2013 financial year outlook. In the Q3.13 reporting, the company smashed the analysts’ per share estimates by a cent and reported higher than expected revenue by $2.06 million. Its Q3.13 EPS was $0.28 and revenue stood at $427 million. During the Q3 period ending September 30, CVA acquired $49 million and a 1,050 ton-a-day facility in Camden, for its long term growth.
The waste-to-energy company carries TheStreet rating of buy of class B score. The agency says CVA exhibits strengths in areas such as revenue growth and stock appreciation for the past 12 months. These factors put it in a better position to have greater positive impact on investors’ wallets.
