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Clean Harbors (CLH) Dips 1.3% Despite Q1 Earnings and Revenue Beat

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Clean Harbors, Inc. (CLH - Free Report)  reported solid first-quarter 2023 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.

Better-than-expected results failed to impress investors as the stock fell 1.3% since the earnings release on May 3.

Adjusted earnings per share (excluding 3 cents from non-recurring items) of $1.36 outpaced the Zacks Consensus Estimate by 18.3%, our estimate by 10.6% and the year-ago quarter’s figure by 63.9%. Total revenues of $1.31 billion beat the Zacks Consensus Estimate by 5.4% and our estimate by 9.2%. Earnings grew 11.8% year over year.

Clean Harbors, Inc. Price, Consensus and EPS Surprise

 

Clean Harbors, Inc. Price, Consensus and EPS Surprise

Clean Harbors, Inc. price-consensus-eps-surprise-chart | Clean Harbors, Inc. Quote

 

Shares of Clean Harbors have grown 50.8% in the trailing 12-month period, compared to its industry’s 4.1% increase.

Let’s check out the numbers in detail.

Revenues by Segment

The Environmental Services  (ES) segment’s 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.

The Safety-Kleen Sustainability Solutions (SKSS) segment’s revenues of $238.4 million, grew 9% year over year.  

Profitability Performance

Adjusted EBITDA of $215.1 million increased 19% year over year. The adjusted EBITDA margin rose to 16.5% from 15.4% in the year-ago quarter.

Segment-wise, ES’ adjusted EBITDA was $228.4 million, up 24% year over year. SKSS’ adjusted EBITDA was $41.4 million, down 20% year over year.

Balance Sheet & Cash Flow

Clean Harbors exited first-quarter 2023 with cash and cash equivalents of $304.3 million, compared with $492.6 million at the end of the prior quarter. Inventories and supplies were $322.4 million, compared with $324.9 million in the prior quarter. Long-term debt was $2.41 billion, flat with the prior quarter reported figure.

CLH generated $28 million in net cash from operating activities in the reported quarter. Adjusted free cash flow was negative $51.8 million.

Guidance

For 2023, adjusted EBITDA is anticipated between $1.02 billion and $1.06 billion, up from the previous range of $1.01 billion and $1.05 billion. The rise reflects the company’s acquisition of Thompson Industrial Services.

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.

Clean Harbors currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Equifax (EFX - Free Report) reported better-than-expected first-quarter 2023 results. Adjusted earnings (excluding 52 cents from non-recurring items) came in at $1.43 per share, beating the Zacks Consensus Estimate by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% on a reported basis from the year-ago figure. The top line was down 3% on a local currency basis.

Omnicom(OMC - Free Report) reported better-than-expected first-quarter 2023 results. OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. Earnings per share increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.

Fiserv, Inc. reported impressive first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Adjusted earnings per share (excluding 69 cents from non-recurring items) of $1.58 increased 12.9% year over year, beating the consensus mark by 1.3%. Earnings beat our estimate by 2.6%. Adjusted revenues of $4.28 billion beat the Zacks Consensus Estimate by 3% and increased 9.5% year over year. Revenues surpassed our estimates by 4.65%.

 


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