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Clean Harbors' (CLH) Shares Expand 3.9% Post Q2 Earnings Beat
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Clean Harbors, Inc. (CLH - Free Report) reported mixed second-quarter 2023 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
The earnings beat seems to impress the investors as the stock rose 3.9% since the earnings release on Aug 2.
Adjusted earnings per share of $2.13 outpaced the Zacks Consensus Estimate by 1.9%, but declined from year-ago quarter’s figure by 12.7%. Total revenues of $1.4 billion missed the consensus estimate by 0.67% but grew 3.1% year over year.
Clean Harbors, Inc. Price, Consensus and EPS Surprise
Environmental Services’ (ES) revenues of $1.17 billion grew 7.3% year over year, surpassing our estimated $1.10 billion. The uptick was backed by higher volumes of high-value waste streams, pricing initiatives and strength in its Industrial Services businesses.
Safety-Kleen Sustainability Solutions’ (SKSS) revenues of $225.75 million declined 15% year over year.
Profitability Performance
Adjusted EBITDA of $287.51 million decreased 7% year over year. The adjusted EBITDA margin declined to 20.6% from 22.8% in the year-ago quarter.
Segment-wise, ES’ adjusted EBITDA was $305.6 million, up 13.5% year over year. SKSS’ adjusted EBITDA was $53.4 million, down 44.9% year over year.
Balance Sheet & Cash Flow
Clean Harbors exited second-quarter 2023 with cash and cash equivalents of $238.8 million, compared with $304.3 million at the end of the prior quarter. Inventories and supplies were $325.9 million, compared with $322.4 million in the prior quarter. Long-term debt was $2.29 billion, lower than the prior quarter’s figure of $2.41 billion.
CLH generated $207.57 million of net cash from operating activities in the reported quarter. Capital expenditure was $122.6 million. Adjusted free cash flow was $86 million.
Guidance
For 2023, adjusted EBITDA is anticipated to be between $1.02 billion and $1.06 billion.
Adjusted free cash flow for the current year is expected between $305 million and $345 million. Net cash from operating activities is projected in the range of $705-$765 million.
Gartner (IT - Free Report) reported better-than-expected second-quarter 2023 results. Adjusted earnings per share (EPS) (excluding 37 cents from non-recurring items) of $2.85 beat the Zacks Consensus Estimate by 14.9% but matched the year-ago reported figure. Revenues of $1.5 billion beat the consensus estimate by 1% and improved 9.2% year over year on a reported basis and 10% on a foreign-currency-neutral basis. Total contract value was $4.6 billion, up 8.9% year over year on a foreign-currency-neutral basis.
Automatic Data (ADP - Free Report) reported better-than-expected fourth-quarter fiscal 2023 results. Adjusted EPS of $1.89 (excluding 1 cent from non-recurring items) beat the Zacks Consensus Estimate by 3.3% and grew 26% from the year-ago fiscal quarter’s figure. Total revenues of $4.47 billion beat the consensus estimate by 1.8% and improved 8.5% from the year-ago fiscal quarter’s reading on a reported basis and 9% on an organic constant-currency basis.
TransUnion (TRU - Free Report) reported impressive second-quarter 2023 results wherein earnings and revenues beat the Zacks Consensus Estimate. Quarterly adjusted earnings of 86 cents per share (adjusting 58 cents from non-recurring items) surpassed the consensus mark by 3.6% but decreased 12.2% year over year. Total revenues of $968 million beat the consensus mark by 1% and increased 2.1% year over year on a reported basis. Revenues were up 3% on a constant-currency basis, mainly driven by strength in international markets.
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Clean Harbors' (CLH) Shares Expand 3.9% Post Q2 Earnings Beat
Clean Harbors, Inc. (CLH - Free Report) reported mixed second-quarter 2023 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
The earnings beat seems to impress the investors as the stock rose 3.9% since the earnings release on Aug 2.
Adjusted earnings per share of $2.13 outpaced the Zacks Consensus Estimate by 1.9%, but declined from year-ago quarter’s figure by 12.7%. Total revenues of $1.4 billion missed the consensus estimate by 0.67% but grew 3.1% year over year.
Clean Harbors, Inc. Price, Consensus and EPS Surprise
Clean Harbors, Inc. price-consensus-eps-surprise-chart | Clean Harbors, Inc. Quote
Let’s check out the numbers in detail.
Revenues by Segment
Environmental Services’ (ES) revenues of $1.17 billion grew 7.3% year over year, surpassing our estimated $1.10 billion. The uptick was backed by higher volumes of high-value waste streams, pricing initiatives and strength in its Industrial Services businesses.
Safety-Kleen Sustainability Solutions’ (SKSS) revenues of $225.75 million declined 15% year over year.
Profitability Performance
Adjusted EBITDA of $287.51 million decreased 7% year over year. The adjusted EBITDA margin declined to 20.6% from 22.8% in the year-ago quarter.
Segment-wise, ES’ adjusted EBITDA was $305.6 million, up 13.5% year over year. SKSS’ adjusted EBITDA was $53.4 million, down 44.9% year over year.
Balance Sheet & Cash Flow
Clean Harbors exited second-quarter 2023 with cash and cash equivalents of $238.8 million, compared with $304.3 million at the end of the prior quarter. Inventories and supplies were $325.9 million, compared with $322.4 million in the prior quarter. Long-term debt was $2.29 billion, lower than the prior quarter’s figure of $2.41 billion.
CLH generated $207.57 million of net cash from operating activities in the reported quarter. Capital expenditure was $122.6 million. Adjusted free cash flow was $86 million.
Guidance
For 2023, adjusted EBITDA is anticipated to be between $1.02 billion and $1.06 billion.
Adjusted free cash flow for the current year is expected between $305 million and $345 million. Net cash from operating activities is projected in the range of $705-$765 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.
Earnings Snapshot
Gartner (IT - Free Report) reported better-than-expected second-quarter 2023 results. Adjusted earnings per share (EPS) (excluding 37 cents from non-recurring items) of $2.85 beat the Zacks Consensus Estimate by 14.9% but matched the year-ago reported figure. Revenues of $1.5 billion beat the consensus estimate by 1% and improved 9.2% year over year on a reported basis and 10% on a foreign-currency-neutral basis. Total contract value was $4.6 billion, up 8.9% year over year on a foreign-currency-neutral basis.
Automatic Data (ADP - Free Report) reported better-than-expected fourth-quarter fiscal 2023 results. Adjusted EPS of $1.89 (excluding 1 cent from non-recurring items) beat the Zacks Consensus Estimate by 3.3% and grew 26% from the year-ago fiscal quarter’s figure. Total revenues of $4.47 billion beat the consensus estimate by 1.8% and improved 8.5% from the year-ago fiscal quarter’s reading on a reported basis and 9% on an organic constant-currency basis.
TransUnion (TRU - Free Report) reported impressive second-quarter 2023 results wherein earnings and revenues beat the Zacks Consensus Estimate. Quarterly adjusted earnings of 86 cents per share (adjusting 58 cents from non-recurring items) surpassed the consensus mark by 3.6% but decreased 12.2% year over year. Total revenues of $968 million beat the consensus mark by 1% and increased 2.1% year over year on a reported basis. Revenues were up 3% on a constant-currency basis, mainly driven by strength in international markets.