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Why Is Clean Harbors (CLH) Up 16% Since Last Earnings Report?
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A month has gone by since the last earnings report for Clean Harbors (CLH - Free Report) . Shares have added about 16% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Clean Harbors due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Clean Harbors reported solid fourth-quarter 2021 results wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of 89 cents outpaced the Zacks Consensus Estimate as well as the year-ago quarter figure by 41.3%. Total revenues of $1.12 billion beat the consensus mark by 9.2% and grew 41% year over year.
Revenues by Segment
Environmental Services’ revenues of $908.12 million grew 36% year over year. The uptick was backed by contributions from the HydroChemPSC acquisition, solid demand for the company’s disposal and recycling services, and strength across its Industrial Services and Field Services businesses.
Safety-Kleen Sustainability Solutions’ revenues of $211.28 million grew 64% year over year. The uptick was backed by solid demand for the company’s base and blended oil, which led to a healthy pricing environment.
Profitability Performance
Adjusted EBITDA of $174.3 million increased 23% year over year. The adjusted EBITDA margin fell to 15.6% from 17.8% in the year-ago quarter.
Segment-wise, Environmental Services’ adjusted EBITDA was $176.95 million, up 8% year over year. Safety-Kleen Sustainability Solutions’ adjusted EBITDA was $61.59 million, up more than 100% year over year.
Balance Sheet & Cash Flow
Clean Harbors exited fourth-quarter 2021 with cash and cash equivalents of $452.58 million compared with $646.66 million at the end of the prior quarter. Inventories and supplies were $250.69 million compared with $228.68 million in the prior quarter. Long-term debt was $2.52 billion compared with $1.55 billion at the end of the prior quarter.
The company generated $177.8 million in net cash from operating activities in the reported quarter. Adjusted free cash flow was $88.3 million.
Guidance
Clean Harbors has unveiled its guidance for 2022. Adjusted EBITDA is anticipated between $765 million and $795 million. Net income is expected between $204 million and $237 million. Adjusted free cash flow is expected between $250 million and $290 million. Net cash from operating activities is projected to be between $560 million and $620 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
The consensus estimate has shifted -18.62% due to these changes.
VGM Scores
Currently, Clean Harbors has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Clean Harbors has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Why Is Clean Harbors (CLH) Up 16% Since Last Earnings Report?
A month has gone by since the last earnings report for Clean Harbors (CLH - Free Report) . Shares have added about 16% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Clean Harbors due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Clean Harbors' Q4 Earnings & Revenue Surpass Estimates
Clean Harbors reported solid fourth-quarter 2021 results wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of 89 cents outpaced the Zacks Consensus Estimate as well as the year-ago quarter figure by 41.3%. Total revenues of $1.12 billion beat the consensus mark by 9.2% and grew 41% year over year.
Revenues by Segment
Environmental Services’ revenues of $908.12 million grew 36% year over year. The uptick was backed by contributions from the HydroChemPSC acquisition, solid demand for the company’s disposal and recycling services, and strength across its Industrial Services and Field Services businesses.
Safety-Kleen Sustainability Solutions’ revenues of $211.28 million grew 64% year over year. The uptick was backed by solid demand for the company’s base and blended oil, which led to a healthy pricing environment.
Profitability Performance
Adjusted EBITDA of $174.3 million increased 23% year over year. The adjusted EBITDA margin fell to 15.6% from 17.8% in the year-ago quarter.
Segment-wise, Environmental Services’ adjusted EBITDA was $176.95 million, up 8% year over year. Safety-Kleen Sustainability Solutions’ adjusted EBITDA was $61.59 million, up more than 100% year over year.
Balance Sheet & Cash Flow
Clean Harbors exited fourth-quarter 2021 with cash and cash equivalents of $452.58 million compared with $646.66 million at the end of the prior quarter. Inventories and supplies were $250.69 million compared with $228.68 million in the prior quarter. Long-term debt was $2.52 billion compared with $1.55 billion at the end of the prior quarter.
The company generated $177.8 million in net cash from operating activities in the reported quarter. Adjusted free cash flow was $88.3 million.
Guidance
Clean Harbors has unveiled its guidance for 2022. Adjusted EBITDA is anticipated between $765 million and $795 million. Net income is expected between $204 million and $237 million. Adjusted free cash flow is expected between $250 million and $290 million. Net cash from operating activities is projected to be between $560 million and $620 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
The consensus estimate has shifted -18.62% due to these changes.
VGM Scores
Currently, Clean Harbors has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Clean Harbors has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.