Clean Harbors, Inc.( CLH Quick Quote CLH - Free Report) reported solid second-quarter 2021 results wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $1.19 outpaced the Zacks Consensus Estimate by 52.6% and increased more than 100% year over year. Total revenues of $926.45 million beat the consensus mark by 9.6% and grew 30.5% year over year due to the unprecedented market conditions.
Quarterly results benefited from a steady flow of high-value waste streams into the company’s disposal network, solid performance of Safety-Kleen Sustainability Solutions business and demand for service offerings.
So far this year, shares of Clean Harbors have gained 30%, outperforming the 8% surge of the
industry it belongs to. Image Source: Zacks Investment Research
Let’s check out the numbers in detail.
Revenues by Segment
Environmental Services revenues of $724.09 million grew 18.2% year over year. The uptick was backed by growth in disposal and recycling volumes, surge in Industrial Services activity, demand for incineration network and improvement in landfill business.
Safety-Kleen Sustainability Solutions revenues of $202.28 million grew more than 100% year over year. The uptick was backed by the combination of the company’s waste oil collection with its Safety-Kleen Oil business.
Adjusted EBITDA of $187.77 million increased 36% year over year. Adjusted EBITDA margin increased 80 basis points (bps) year over year to 20.3%.
Segment wise, Environmental Services’ adjusted EBITDA was $176.04 million, down 0.1% year over year. Safety-Kleen Sustainability Solutions’ adjusted EBITDA was $63.31 million, up more than 100% year over year.
Balance Sheet & Cash Flow
Clean Harbors exited second-quarter 2021 with cash and cash equivalents of $595.57 million compared with $496.38 million at the end of the prior quarter. Inventories and supplies were $215.73 million compared with $219.49 million in the prior quarter. Long-term debt of $1.55 billion was flat sequentially.
The company generated $162.43 million in net cash from operating activities in the reported quarter. Adjusted free cash flow was $114.63 million.
Clean Harbors has raised its guidance for the full year. Adjusted EBITDA is now anticipated between $620 million and $650 million compared with the prior-guided range of $560-$600 million. Net income is now anticipated between $159 million and $193 million, compared with the prior-guided range of $116-$157 million.
Adjusted free cash flow is now expected between $285 million and $315 million, compared with the prior-guided range of $230-$270 million. Net cash from operating activities is now projected between $475 million and $525 million compared with the prior-guided range of $415-$475 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 Performance of Other Business Services Companies Equifax’s ( EFX Quick Quote EFX - Free Report) second-quarter 2021 adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and improved on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and improved 26% year over year on a reported basis and 23% on a local-currency basis. Robert Half’s ( RHI Quick Quote RHI - Free Report) second-quarter 2021 earnings of $1.33 per share beat the consensus mark by 26.7% and were up more than 100% year over year. Revenues of $1.6 billion surpassed the consensus mark by 6.5% and increased 42.3% year over year on a reported basis and 40% on an adjusted basis. ManpowerGroup’s ( MAN Quick Quote MAN - Free Report) second-quarter 2021 adjusted earnings of $2.02 per share beat the consensus mark by 68.2% and improved more than 100% year over year. Revenues of $5.28 billion beat the consensus mark by 2% and increased 41% year over year on a reported basis and 31.3% on a constant-currency (cc) basis.