Wednesday, renewable energy company Covanta Holding Corp. (CVA) reported a decline in third quarter profit as revenues dropped 7% from last year. The company also reaffirmed its guidance for the full-year 2009.
Covanta's third quarter net income attributable to the company declined to $40.9 million or $0.26 per share from $47.1 million or $0.30 per share in the same quarter last year.
Excluding the transaction expense related to the acquisition of Veolia Energy-from-Waste facilities, earnings for the quarter decreased to $0.28 per share, from $0.30 per share in the prior year.
On average, nine analysts polled by Thomson Reuters expected the company to report earnings of $0.24 per share for the quarter. Analysts' estimates typically exclude one-time items.
Operating revenues for the quarter decreased 7% to $409 million from $439 million in the comparable quarter last year, partly impacted by lower recycled metal, energy and waste prices. Analysts expected the company to report revenues of $387.85 million for the quarter.
Domestic segment revenue declined 3% to $346 million and international segment revenue decreased $22 million. New business revenue for the third quarter primarily related to the Veolia acquisition was $23 million.
Total operating expenses for the quarter declined to $337.73 million from $350.58 million in the same quarter last year, due primarily to lower fuel costs at Indian facilities.
Operating income reported decreased to $70.97 million from $88.08 million in the year-ago period.
For the nine months, net income attributable to the company declined to $73.36 million or $0.47 per share from $101.66 million or $0.66 per share in the year-ago period. Total operating revenue decreased 9% to $1.14 billion from $1.25 billion last year.
Looking ahead to the full year 2009, the company reaffirmed its earnings guidance in the range of $0.65 to $0.80 per share.
Analysts currently expect the company to post earnings of $0.69 per share for the full year. Covanta lasted traded at $18.05,up $0.15 or 0.84%, on a volume of 1.55 million shares on the NYSE.
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