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Clean Harbors (CLH) Stock Gains 6% Post Q1 Earnings Beat

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Clean Harbors, Inc. (CLH - Free Report) reported impressive first-quarter 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

The stock has gained 5.5% since the earnings release on May 1 in response to the better-than-expected earnings.

CLH’s earnings of $1.3 per share beat the Zacks Consensus Estimate by 11.2% but declined 5.2% from the year-ago quarter. Total revenues of $1.4 billion surpassed the consensus estimate by 2.8% and increased 5.3% on a year-over-year basis.

The stock has gained 56.1% over the past year, outperforming the 21% increase of the industry it belongs to and  25.7% growth of the Zacks S&P 500 Composite.

Clean Harbors, Inc. Price and EPS Surprise Clean Harbors, Inc. Price and EPS Surprise

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

Segmental Revenues

Environmental Services’ (ES) revenues of $1.2 billion increased 9.5% from the year-ago quarter, beating our anticipated $1.1 billion. The uptick was backed by organic growth from volumes and pricing, and the acquisition of HEPACO and Thompson.

Revenues from Safety-Kleen Sustainability Solutions’ (SKSS) amounted to $204.1 million, down 13.7% from fourth-quarter 2023 and missing our estimate of $231.8 million. Challenging demand in both base oil and lubricants leading to lower pricing, specifically for non-contracted volumes sold in the spot market, resulted in the decline of this segment’s revenues.

Profitability Performance

Adjusted EBITDA of $230.1 million grew 7% from the year-ago quarter and surpassed our expectation of $220.9 million. The adjusted EBITDA margin was 16.7%, up 20 basis points from the year-ago quarter’s actual.

Segment-wise, ES adjusted EBITDA amounted to $264.5 million, increasing 15.8% year over year. The figure beat our estimated $240.3 million. Adjusted EBITDA for SKSS was $29.7 million, down 28.4% from the year-ago quarter and missing our anticipated $37.8 million.

Balance Sheet & Cash Flow

Clean Harbors exited the quarter with cash and cash equivalents of $337.9 million compared with $444.7 million at the end of the preceding quarter. Inventories and supplies were $354.3 million compared with $327.5 million in fourth-quarter 2023.

Long-term debt (less current portion) was $2.8 billion compared with the previous quarter’s $2.3 billion. CLH generated $18.5 million in net cash from operating activities. The capital expenditure amounted to $137.9 million. The adjusted free cash flow utilized was $118.4 million.

2024 Guidance

For 2024, CLH raised the guidance for adjusted EBITDA to be within the range of $1.1-$1.15 billion from the previously guided range of $1.05-$1.11 billion. The adjusted free cash flow is expected to be between $340 million and $400 million. CapEx is projected to be within the range of $410-$440 million compared with the previous expectation of $400-$430 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

Verisk Analytics Inc. (VRSK - Free Report) has reported impressive first-quarter 2024 results.

VRSK’s adjusted earnings (excluding 11 cents from non-recurring items) were $1.6 per share, beating the Zacks Consensus Estimate by 7.2% and increasing 26.4% from the year-ago quarter. Total revenues of $704 million surpassed the consensus estimate marginally and increased 8% year over year on a reported basis and 6.9% on an organic constant currency basis.

ManpowerGroup Inc. (MAN - Free Report) reported mixed first-quarter 2024 results.

MAN’s quarterly adjusted earnings of 94 cents per share surpassed the consensus mark by 4.4% but declined 41.6% year over year, mainly due to run-off Proservia Germany business and Argentina-related currency translation losses. Revenues of $4.4 billion lagged the consensus mark by 0.6% and dipped 7% year over year on a reported basis and 5% on a constant-currency basis.

Rollins, Inc.’s (ROL - Free Report) first-quarter earnings met the Zacks Consensus Estimate while revenues beat the same.

ROL’s adjusted earnings of 20 cents per share increased 11.1% year over year. Revenues of $748.3 million beat the consensus mark by 2.9% and improved 13.7% year over year. Organic revenues of $702.4 million increased 7.5% year over year.

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