A month has gone by since the last earnings report for Clean Harbors (CLH Quick QuoteCLH - Free Report) . Shares have lost about 0.2% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Clean Harbors due for a breakout? 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 catalysts.

Clean Harbors' Q1 Earnings & Revenue Surpass Estimates

Clean Harbors reported solid first-quarter 2021 results wherein earnings and revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings per share of 42 cents outpaced the Zacks Consensus Estimate by 61.5% and increased 50% year over year. Total revenues of $808.1 million beat the consensus mark by 2.7% and declined 6% year over year due to the unprecedented market conditions.

Revenues by Segment

Environmental Services revenues of $654.6 million declined 7.2% year over year. Safety-Kleen Sustainability Solutions revenues of $153.47 million grew 0.1% year over year.

Profitability Performance

Adjusted EBITDA of $129.45 million increased 2.8% year over year. Adjusted EBITDA margin increased 130 basis points (bps) year over year to 16%. The uptick was aided by greater volumes of high-value waste streams in the company’s disposal network and higher pricing environment for base oil, coupled with ongoing cost-control and productivity initiatives.

Segment wise, Environmental Services’ adjusted EBITDA was $140.25 million, down 3.8% year over year. Safety-Kleen Sustainability Solutions’ adjusted EBITDA of $31.63 million, up 30.7% year over year.

Balance Sheet & Cash Flow

Clean Harbors exited first-quarter 2021 with cash and cash equivalents of $496.38 million compared with $519.10 million at the end of the prior quarter. Inventories and supplies were $219.49 million compared with $220.49 million in the prior quarter. Long-term debt of $1.55 billion was flat sequentially.

The company generated $103 million in net cash from operating activities in the reported quarter. Adjusted free cash flow was $62.29 million.

Guidance

For the second quarter of 2021, Clean Harbors expects adjusted EBITDA to register 15-20% year-over-year growth.

Clean Harbors has raised its guidance for the full year. Adjusted EBITDA is now anticipated between $560 million and $600 million compared with the prior-guided range of $545-$585 million. Net income is now anticipated between $116 million and $157 million, compared with the prior-guided range of $105-$146 million.

Adjusted free cash flow is now expected between $230 million and $270 million, compared with the prior-guided range of $215-$255 million. Net cash from operating activities is now projected between $415 million and $475 million, compared with the prior-guided range of $400-$460 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 16.98% due to these changes.

VGM Scores

At this time, Clean Harbors has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, 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 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.