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Clean Harbors (CLH) Up 1.8% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Clean Harbors (CLH - Free Report) . Shares have added about 1.8% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Clean Harbors' Q4 Earnings Surpass Estimates
Clean Harbors reported solid fourth-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings per share (excluding 8 cents from non-recurring items) of $1.44 outpaced the Zacks Consensus Estimate by 11.6% and the year-ago quarter’s figure by 61.8%. Total revenues of $1.28 billion beat the Zacks Consensus Estimate by 2.5% and grew 14.2% year over year.
Let’s check out the numbers in detail.
Revenues by Segment
Environmental Services’ (ES) revenues of $1.04 billion grew 15% year over year. 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 $238.4 million grew 9% year over year.
Profitability Performance
Adjusted EBITDA of $224.2 million increased 29% year over year. The adjusted EBITDA margin rose to 17.5% from 15.6% in the year-ago quarter.
Segment-wise, ES’ adjusted EBITDA was $239.4 million, up 35.3% year over year. SKSS’ adjusted EBITDA was $54.3 million, down 11.9% year over year.
Balance Sheet & Cash Flow
Clean Harbors exited fourth-quarter 2022 with cash and cash equivalents of $492.6 million compared with $449 million at the end of the prior quarter. Inventories and supplies were $324.99 million compared with $294.2 million in the prior quarter. Long-term debt was $2.41 billion compared with $2.51 recorded in the prior quarter.
CLH generated $268.7 million of net cash from operating activities in the reported quarter. Adjusted free cash flow was $171.8 million.
Guidance
For the first quarter of 2023, Clean Harbors expects Adjusted EBITDA to increase approximately 20% from the prior year.
For 2023, adjusted EBITDA is anticipated between $1.010 billion and $1.050 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 8.75% due to these changes.
VGM Scores
Currently, Clean Harbors has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Clean Harbors has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Clean Harbors is part of the Zacks Waste Removal Services industry. Over the past month, Waste Connections (WCN - Free Report) , a stock from the same industry, has gained 3.2%. The company reported its results for the quarter ended December 2022 more than a month ago.
Waste Connections reported revenues of $1.87 billion in the last reported quarter, representing a year-over-year change of +15.1%. EPS of $0.89 for the same period compares with $0.83 a year ago.
Waste Connections is expected to post earnings of $0.88 per share for the current quarter, representing a year-over-year change of +7.3%. Over the last 30 days, the Zacks Consensus Estimate has changed 0%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Waste Connections. Also, the stock has a VGM Score of C.
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Clean Harbors (CLH) Up 1.8% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Clean Harbors (CLH - Free Report) . Shares have added about 1.8% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Clean Harbors' Q4 Earnings Surpass Estimates
Clean Harbors reported solid fourth-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings per share (excluding 8 cents from non-recurring items) of $1.44 outpaced the Zacks Consensus Estimate by 11.6% and the year-ago quarter’s figure by 61.8%. Total revenues of $1.28 billion beat the Zacks Consensus Estimate by 2.5% and grew 14.2% year over year.
Let’s check out the numbers in detail.
Revenues by Segment
Environmental Services’ (ES) revenues of $1.04 billion grew 15% year over year. 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 $238.4 million grew 9% year over year.
Profitability Performance
Adjusted EBITDA of $224.2 million increased 29% year over year. The adjusted EBITDA margin rose to 17.5% from 15.6% in the year-ago quarter.
Segment-wise, ES’ adjusted EBITDA was $239.4 million, up 35.3% year over year. SKSS’ adjusted EBITDA was $54.3 million, down 11.9% year over year.
Balance Sheet & Cash Flow
Clean Harbors exited fourth-quarter 2022 with cash and cash equivalents of $492.6 million compared with $449 million at the end of the prior quarter. Inventories and supplies were $324.99 million compared with $294.2 million in the prior quarter. Long-term debt was $2.41 billion compared with $2.51 recorded in the prior quarter.
CLH generated $268.7 million of net cash from operating activities in the reported quarter. Adjusted free cash flow was $171.8 million.
Guidance
For the first quarter of 2023, Clean Harbors expects Adjusted EBITDA to increase approximately 20% from the prior year.
For 2023, adjusted EBITDA is anticipated between $1.010 billion and $1.050 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 8.75% due to these changes.
VGM Scores
Currently, Clean Harbors has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Clean Harbors has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Clean Harbors is part of the Zacks Waste Removal Services industry. Over the past month, Waste Connections (WCN - Free Report) , a stock from the same industry, has gained 3.2%. The company reported its results for the quarter ended December 2022 more than a month ago.
Waste Connections reported revenues of $1.87 billion in the last reported quarter, representing a year-over-year change of +15.1%. EPS of $0.89 for the same period compares with $0.83 a year ago.
Waste Connections is expected to post earnings of $0.88 per share for the current quarter, representing a year-over-year change of +7.3%. Over the last 30 days, the Zacks Consensus Estimate has changed 0%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Waste Connections. Also, the stock has a VGM Score of C.