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Clean Harbors, Inc. (CLH - Free Report) reported solid third-quarter 2022 results, wherein earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings per share (excluding 7 cents from non-recurring items) of $2.43 outpaced the Zacks Consensus Estimate by 20.3% and the year-ago quarter’s figure by 113.2%. Total revenues of $1.36 billion beat the consensus mark by 5.4% and grew 43.3% year over year.
Let’s check out the numbers in detail.
Revenues by Segment
Environmental Services’ (ES) revenues of $1.09 billion grew 46% year over year. The uptick was backed by contributions from the HydroChemPSC (HPC) acquisition, higher volumes of high-value waste streams, pricing initiatives, solid demand across its service businesses and strength in its Industrial Services businesses.
Safety-Kleen Sustainability Solutions’ (SKSS) revenues of $276.3 million grew 34% year over year. The uptick was backed by solid demand for Clean Harbors’ base oil.
Clean Harbors, Inc. Price, Consensus and EPS Surprise
Adjusted EBITDA of $308.6 million increased 67% year over year. The adjusted EBITDA margin rose to 22.6% from 19.5% in the year-ago quarter.
Segment-wise, Environmental Services’ adjusted EBITDA was $260.7 million, up 57% year over year. Safety-Kleen Sustainability Solutions’ adjusted EBITDA was $103.2 million, up 45.8% year over year.
Balance Sheet & Cash Flow
Clean Harbors exited third-quarter 2022 with cash and cash equivalents of $449 million compared with $344.6 million at the end of the prior quarter. Inventories and supplies were $294.2 million compared with $275.7 million in the prior quarter. Long-term debt of $2.51 billion was flat with the prior quarter’s level.
CLH generated $225.6 million of net cash from operating activities in the reported quarter. Adjusted free cash flow was $131.2 million.
Guidance
For 2022, Adjusted EBITDA is now anticipated between $1.010 billion and $1.030 billion compared with the prior guidance of $975-$1 billion.
Adjusted free cash flow is expected between $260 million and $290 million (prior view: $310 million and $350 million). Net cash from operating activities is projected between $585 million and $635 million (prior view: $630 million and $690 million).
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year, driven by a strong margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
Equifax Inc. (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 39 cents from non-recurring items) of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. However, revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year on a reported basis and 4% on a local-currency basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected third-quarter 2022 results.
Adjusted earnings (excluding a penny from non-recurring items) of 63 cents per share beat the Zacks Consensus Estimate by 6.8%. The bottom line has been steady over the past year. Net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.
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Clean Harbors (CLH) Q3 Earnings & Revenues Beat Mark, Rise Y/Y
Clean Harbors, Inc. (CLH - Free Report) reported solid third-quarter 2022 results, wherein earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings per share (excluding 7 cents from non-recurring items) of $2.43 outpaced the Zacks Consensus Estimate by 20.3% and the year-ago quarter’s figure by 113.2%. Total revenues of $1.36 billion beat the consensus mark by 5.4% and grew 43.3% year over year.
Let’s check out the numbers in detail.
Revenues by Segment
Environmental Services’ (ES) revenues of $1.09 billion grew 46% year over year. The uptick was backed by contributions from the HydroChemPSC (HPC) acquisition, higher volumes of high-value waste streams, pricing initiatives, solid demand across its service businesses and strength in its Industrial Services businesses.
Safety-Kleen Sustainability Solutions’ (SKSS) revenues of $276.3 million grew 34% year over year. The uptick was backed by solid demand for Clean Harbors’ base oil.
Clean Harbors, Inc. Price, Consensus and EPS Surprise
Clean Harbors, Inc. price-consensus-eps-surprise-chart | Clean Harbors, Inc. Quote
Profitability Performance
Adjusted EBITDA of $308.6 million increased 67% year over year. The adjusted EBITDA margin rose to 22.6% from 19.5% in the year-ago quarter.
Segment-wise, Environmental Services’ adjusted EBITDA was $260.7 million, up 57% year over year. Safety-Kleen Sustainability Solutions’ adjusted EBITDA was $103.2 million, up 45.8% year over year.
Balance Sheet & Cash Flow
Clean Harbors exited third-quarter 2022 with cash and cash equivalents of $449 million compared with $344.6 million at the end of the prior quarter. Inventories and supplies were $294.2 million compared with $275.7 million in the prior quarter. Long-term debt of $2.51 billion was flat with the prior quarter’s level.
CLH generated $225.6 million of net cash from operating activities in the reported quarter. Adjusted free cash flow was $131.2 million.
Guidance
For 2022, Adjusted EBITDA is now anticipated between $1.010 billion and $1.030 billion compared with the prior guidance of $975-$1 billion.
Adjusted free cash flow is expected between $260 million and $290 million (prior view: $310 million and $350 million). Net cash from operating activities is projected between $585 million and $635 million (prior view: $630 million and $690 million).
Currently, Clean Harbors carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year, driven by a strong margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
Equifax Inc. (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 39 cents from non-recurring items) of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. However, revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year on a reported basis and 4% on a local-currency basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected third-quarter 2022 results.
Adjusted earnings (excluding a penny from non-recurring items) of 63 cents per share beat the Zacks Consensus Estimate by 6.8%. The bottom line has been steady over the past year. Net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.