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Covanta 1Q16 results -3

09:23 27-Apr-16

Covanta affirmed overall 2016 full year guidance in its presentation, but that's a little disappointing given that has already shipped metals in Q1 and prices continue to be good.  That is apparently offsetting same store revenue which is lower by 3.5%.  Management claims no visibility on iron pricing going forward.

Overall, there is no reason for panic, but this was a lackluster quarter.  My previous surprise at how well the stock was holding up, and the current pre-market declines seem merited.

Covanata has reported results for the first quarter of 2016:

• the company lost 19 cents per share, which misses by 10 cents
• on revenue of $403M, which beats by $3M

Most of the miss seems to be due to scheduled maintenance.  All the same, these results are not particularly good, though the stock is unaffected after hours.  I had thought the recent increase in ferrous metals pricing might give a little bit of boost, but perhaps its too soon for that.  The conference call is tomorrow morning.  More then, if appropriate.

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