We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Clean Harbors (CLH) Down 3.3% Since the Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Clean Harbors, Inc. (CLH - Free Report) . Shares have lost about 3.3% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? 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 Misses Q4 Earnings, Offers '17 View
Clean Harbors reported dismal fourth-quarter 2016 results with adjusted loss of $3.4 million or $0.06 per share, against earnings of $0.6 million or $0.01 per share in the prior-year quarter. The decline was due to weak industrial and energy market conditions. Adjusted loss for the reported quarter comprehensively missed the Zacks Consensus Estimate earnings of $0.03.
GAAP loss for the reported quarter was $12.7 million or $0.22 cents per share as against income of $0.6 million or $0.01 cent per share in the year-earlier quarter. The deterioration was primarily due fall in revenues.
Net revenue was $692.1 million, down 3% from the prior-year period, primarily due to the continued industrial slowdown, softness in energy, and decline in revenues in Western Canada. Revenues also missed the Zacks Consensus Estimate of $697 million. Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) for the reported quarter decreased to $95.9 million from $97.1 million in the year-ago quarter.
For full-year 2016, adjusted earnings declined significantly to $1.3 million or $0.02 cents per share compared with $74.1 million or $1.27 per share in the prior-year period. Revenues for the year came in at $2,755.2 million compared with $3,275.1 million in the prior year.
Segmental Details
Technical Services accounted for 32.6% of the total revenue. The segment’s revenues in the quarter declined 9.6% from the prior-year quarter to $225.7 million due to the industrial weakness and continued lack of projects, particularly landfills. Adjusted EBITDA declined 4% year over year to $69.6 million.
Industrial and Field Services’ revenues accounted for 21.8% of total revenue in the reported quarter. The segment’s revenues declined to $151.2 million from $163.4 million in the prior-year quarter, due to major emergency response events or large unexpected outages at its customers' plants. Also customers still remain reluctant to spend on projects. Adjusted EBITDA was $12.6 million compared with $11.8 in the prior-year quarter.
Kleen Performance Products’ revenues increased to $288.9 million from $255.8 million in the prior-year quarter. Revenues were up substantially as the company fully benefited from their strategic move to charge-for-oil versus pay-for-oil, a year ago. However, adjusted EBITDA was up from the year-ago quarter to $54.2 million.
Oil Gas and Lodging Services revenues declined 42.7% to $25.1 million due to slowdown in energy markets, both in the U.S. and Canada. Future price uncertainty has resulted in lower activity levels which are negatively impacting the business' results. A major part of the segment's operations are in Canada, and therefore U.S. to Canadian dollar foreign currency translation significantly affects the segment's results. The company incurred a negative adjusted EBITDA of $3.4 million as against positive adjusted EBITDA of $2.1 million in the year-ago quarter due to lower revenues, margin pressure and the effect of currency translation.
Balance Sheet and Cash Flow
For 2016, the company’s cash and cash equivalents were $307 million compared with $184.7 in 2015. Long-term debt was $1,633.3 million. Clean Harbors repurchased shares worth $22 million, while it still has approximately $100 million remaining under its existing $300 million plan.
Guidance
Clean Harbors provided its guidance for 2017. Adjusted EBITDA is expected to be in the range of $435 million to $475 million. On a GAAP basis, the company expects 2017 net income in the range of $4−$35 million. Adjusted net income for 2017 is expected in the range of $24−$48 million.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one downward revision for the current quarter. In the past month, the consensus estimate also shifted downward by 200.8% due to these changes.
At this time, Clean Harbors's stock has a subpar Growth Score of 'D', a grade with the same score on the momentum front. However, the stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
The stock is suitable solely for value based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of these revisions also indicates a downward shift. Interestingly, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Clean Harbors (CLH) Down 3.3% Since the Last Earnings Report?
It has been about a month since the last earnings report for Clean Harbors, Inc. (CLH - Free Report) . Shares have lost about 3.3% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? 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 Misses Q4 Earnings, Offers '17 View
Clean Harbors reported dismal fourth-quarter 2016 results with adjusted loss of $3.4 million or $0.06 per share, against earnings of $0.6 million or $0.01 per share in the prior-year quarter. The decline was due to weak industrial and energy market conditions. Adjusted loss for the reported quarter comprehensively missed the Zacks Consensus Estimate earnings of $0.03.
GAAP loss for the reported quarter was $12.7 million or $0.22 cents per share as against income of $0.6 million or $0.01 cent per share in the year-earlier quarter. The deterioration was primarily due fall in revenues.
Net revenue was $692.1 million, down 3% from the prior-year period, primarily due to the continued industrial slowdown, softness in energy, and decline in revenues in Western Canada. Revenues also missed the Zacks Consensus Estimate of $697 million. Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) for the reported quarter decreased to $95.9 million from $97.1 million in the year-ago quarter.
For full-year 2016, adjusted earnings declined significantly to $1.3 million or $0.02 cents per share compared with $74.1 million or $1.27 per share in the prior-year period. Revenues for the year came in at $2,755.2 million compared with $3,275.1 million in the prior year.
Segmental Details
Technical Services accounted for 32.6% of the total revenue. The segment’s revenues in the quarter declined 9.6% from the prior-year quarter to $225.7 million due to the industrial weakness and continued lack of projects, particularly landfills. Adjusted EBITDA declined 4% year over year to $69.6 million.
Industrial and Field Services’ revenues accounted for 21.8% of total revenue in the reported quarter. The segment’s revenues declined to $151.2 million from $163.4 million in the prior-year quarter, due to major emergency response events or large unexpected outages at its customers' plants. Also customers still remain reluctant to spend on projects. Adjusted EBITDA was $12.6 million compared with $11.8 in the prior-year quarter.
Kleen Performance Products’ revenues increased to $288.9 million from $255.8 million in the prior-year quarter. Revenues were up substantially as the company fully benefited from their strategic move to charge-for-oil versus pay-for-oil, a year ago. However, adjusted EBITDA was up from the year-ago quarter to $54.2 million.
Oil Gas and Lodging Services revenues declined 42.7% to $25.1 million due to slowdown in energy markets, both in the U.S. and Canada. Future price uncertainty has resulted in lower activity levels which are negatively impacting the business' results. A major part of the segment's operations are in Canada, and therefore U.S. to Canadian dollar foreign currency translation significantly affects the segment's results. The company incurred a negative adjusted EBITDA of $3.4 million as against positive adjusted EBITDA of $2.1 million in the year-ago quarter due to lower revenues, margin pressure and the effect of currency translation.
Balance Sheet and Cash Flow
For 2016, the company’s cash and cash equivalents were $307 million compared with $184.7 in 2015. Long-term debt was $1,633.3 million. Clean Harbors repurchased shares worth $22 million, while it still has approximately $100 million remaining under its existing $300 million plan.
Guidance
Clean Harbors provided its guidance for 2017. Adjusted EBITDA is expected to be in the range of $435 million to $475 million. On a GAAP basis, the company expects 2017 net income in the range of $4−$35 million. Adjusted net income for 2017 is expected in the range of $24−$48 million.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one downward revision for the current quarter. In the past month, the consensus estimate also shifted downward by 200.8% due to these changes.
Clean Harbors, Inc. Price and Consensus
Clean Harbors, Inc. Price and Consensus | Clean Harbors, Inc. Quote
VGM Scores
At this time, Clean Harbors's stock has a subpar Growth Score of 'D', a grade with the same score on the momentum front. However, the stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
The stock is suitable solely for value based on our styles scores.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of these revisions also indicates a downward shift. Interestingly, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.