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Why Is Clean Harbors (CLH) Up 1.2% 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 1.2% 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 drivers.
Clean Harbors' Q2 Earnings Surpass Estimates
Clean Harbors, Inc. reported mixed second-quarter 2023 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
Currently, Clean Harbors has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% 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
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Clean Harbors has a Zacks Rank #2 (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 1.2% Since Last Earnings Report?
A month has gone by since the last earnings report for Clean Harbors (CLH - Free Report) . Shares have added about 1.2% 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 drivers.
Clean Harbors' Q2 Earnings Surpass Estimates
Clean Harbors, Inc. reported mixed second-quarter 2023 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
Currently, Clean Harbors has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% 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
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Clean Harbors has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.