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Clean Harbors (CLH) Shares Rise 4.9% Since Q3 Earnings Miss

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Clean Harbors, Inc. (CLH - Free Report)  reported disappointing third-quarter 2023 results, wherein earnings and revenues missed the Zacks Consensus Estimate.

Investors, however, seem unaffected by the miss as the stock has risen 4.9% since the earnings release on Nov 1.

Adjusted earnings per share of $1.68 missed the Zacks Consensus Estimate by 18.8% and declined from the year-ago quarter’s figure by 30.9%. Total revenues of $1.37 billion missed the consensus estimate by 2.1% but grew slightly on a year-over-year basis.

Let’s check out the numbers in detail.

Revenues by Segment

Environmental Services’ (ES) revenues of $1.15 billion grew 5.5% year over year, surpassing our estimate of $1.11 billion. The uptick was backed by higher volumes of high-value waste streams, pricing initiatives and strength in its Industrial Services businesses.

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

Safety-Kleen Sustainability Solutions’ (SKSS) revenues of $219.2 million declined 20.7% year over year, missing our estimate of $271.6 million.  

Profitability Performance

Adjusted EBITDA of $255 million decreased 17.4% year over year and missed our estimate of $277.8 million. The adjusted EBITDA margin declined to 18.7% from 22.6% in the year-ago quarter.

Segment-wise, ES adjusted EBITDA was $288.98 million, up 10.9% year over year. SKSS adjusted EBITDA was $31.16 million, down 69.8% year over year.

Balance Sheet & Cash Flow

Clean Harbors exited third-quarter 2023 with cash and cash equivalents of $336 million compared with $238.8 million at the end of the prior quarter. Inventories and supplies were $311.5 million compared with $325.9 million in the prior quarter. Long-term debt was $2.29 billion, flat compared with the prior quarter’s figure.

CLH generated $220.12 million in net cash from operating activities in the reported quarter. Capital expenditure was $107.61 million. Adjusted free cash flow was $114.7 million.


For 2023, adjusted EBITDA is anticipated to be between $1.01 billion and $1.03 billion.

Adjusted free cash flow for the current year is expected between $300 million and $330 million. Net cash from operating activities is projected in the range of $700-$750 million.

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

Earnings Snapshot of Some Business Services Stocks

S&P Global Inc. (SPGI - Free Report) reported impressive third-quarter results wherein earnings and revenues beat the Zacks Consensus Estimate.

SPGI’s adjusted earnings per share (excluding 88 cents from non-recurring items) of $3.21 rose 9.6% year over year and beat consensus estimate by 5.3%. Revenues of $3.08 billion surpassed the consensus estimate by 2% and improved 8% year over year, backed by strong performance in all divisions.

Verisk Analytics Inc. (VRSK - Free Report) reported encouraging third-quarter 2023 results wherein earnings and revenues beat the respective estimates.

VRSK’s adjusted earnings (excluding 23 cents from non-recurring items) were $1.52 per share, beating the Zacks Consensus Estimate and increasing 4.1% from the year-ago reported figure. Such a beat was supported by strong growth in underwriting data solutions, life insurance and extreme events solutions.

Fiserv, Inc. (FI - Free Report)   third-quarter 2023 earnings and revenues surpassed the Zacks Consensus Estimate.

FI’s adjusted earnings per share (excluding 40 cents from non-recurring items) of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and increased 8.2% year over year.

Organic revenue growth was 12% in the quarter, driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.

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