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Clean Harbors, Inc. (CLH - Free Report) reported solid second-quarter 2022 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share (excluding 27 cents from non-recurring items) of $2.44 outpaced the Zacks Consensus Estimate by 59.5% and the year-ago quarter’s figure by 105%. Total revenues of $1.36 billion beat the consensus mark by 9.9% and grew 46.4% year over year.
Over the past year, shares of Clean Harbors have lost 0.6% compared with the 22.3% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Let’s check out the numbers in detail.
Revenues by Segment
Environmental Services’ (ES) revenues of $1.1 billion grew 51% year over year. The uptick was backed by contributions from the HydroChemPSC (HPC) acquisition, higher volumes in its disposal and recycling facilities, pricing initiatives, solid demand across its service businesses and strength in its Industrial Services businesses.
Safety-Kleen Sustainability Solutions’ (SKSS) revenues of $265.5 million grew 31.2% year over year. The uptick was backed by solid demand for Clean Harbors’ base oil.
Clean Harbors, Inc. Price, Consensus and EPS Surprise
Adjusted EBITDA of $309.1 million increased 65% year over year. The adjusted EBITDA margin rose to 22.8% from 20.3% in the year-ago quarter. Segment-wise, Environmental Services’ adjusted EBITDA was $269.3 million, up 53% year over year. Safety-Kleen Sustainability Solutions’ adjusted EBITDA was $97 million, up 53.2% year over year.
Balance Sheet & Cash Flow
Clean Harbors exited second-quarter 2022 with cash and cash equivalents of $344.6 million compared with $339.58 million at the end of the prior quarter. Inventories and supplies were $275.7 million compared with $264.73 million in the prior quarter. Long-term debt was $2.51 billion kept flat with the prior quarter.
CLH used $170.6 million of net cash from operating activities in the reported quarter. Adjusted free cash flow was $94.6 million.
Guidance
In the third quarter of 2022, Clean Harbors expects Adjusted EBITDA to increase approximately 50% from the prior-year period’s figure, indicating higher profitability in both the ES and SKSS segments, as well as the addition of HPC.
For 2022, Adjusted EBITDA is now anticipated between $975 million and $1 billion compared with the prior guidance of $800-$830 million.
Adjusted free cash flow is expected between $310 million and $350 million (prior view: $250 million and $290 million). Net cash from operating activities is projected between $630 million and $690 million (prior view: $560 million and $620 million).
Recent Performances of Some Other Business Services Companies
Equifax (EFX - Free Report) reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same.
EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.
IQVIA Holdings (IQV - Free Report) reported solid second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.
Omnicom Group (OMC - Free Report) reported impressive second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by a strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.
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Clean Harbors (CLH) Q2 Earnings & Revenues Beat Mark, Rise Y/Y
Clean Harbors, Inc. (CLH - Free Report) reported solid second-quarter 2022 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share (excluding 27 cents from non-recurring items) of $2.44 outpaced the Zacks Consensus Estimate by 59.5% and the year-ago quarter’s figure by 105%. Total revenues of $1.36 billion beat the consensus mark by 9.9% and grew 46.4% year over year.
Over the past year, shares of Clean Harbors have lost 0.6% compared with the 22.3% decline of the industry it belongs to.
Image Source: Zacks Investment Research
Let’s check out the numbers in detail.
Revenues by Segment
Environmental Services’ (ES) revenues of $1.1 billion grew 51% year over year. The uptick was backed by contributions from the HydroChemPSC (HPC) acquisition, higher volumes in its disposal and recycling facilities, pricing initiatives, solid demand across its service businesses and strength in its Industrial Services businesses.
Safety-Kleen Sustainability Solutions’ (SKSS) revenues of $265.5 million grew 31.2% year over year. The uptick was backed by solid demand for Clean Harbors’ base oil.
Clean Harbors, Inc. Price, Consensus and EPS Surprise
Clean Harbors, Inc. price-consensus-eps-surprise-chart | Clean Harbors, Inc. Quote
Profitability Performance
Adjusted EBITDA of $309.1 million increased 65% year over year. The adjusted EBITDA margin rose to 22.8% from 20.3% in the year-ago quarter.
Segment-wise, Environmental Services’ adjusted EBITDA was $269.3 million, up 53% year over year. Safety-Kleen Sustainability Solutions’ adjusted EBITDA was $97 million, up 53.2% year over year.
Balance Sheet & Cash Flow
Clean Harbors exited second-quarter 2022 with cash and cash equivalents of $344.6 million compared with $339.58 million at the end of the prior quarter. Inventories and supplies were $275.7 million compared with $264.73 million in the prior quarter. Long-term debt was $2.51 billion kept flat with the prior quarter.
CLH used $170.6 million of net cash from operating activities in the reported quarter. Adjusted free cash flow was $94.6 million.
Guidance
In the third quarter of 2022, Clean Harbors expects Adjusted EBITDA to increase approximately 50% from the prior-year period’s figure, indicating higher profitability in both the ES and SKSS segments, as well as the addition of HPC.
For 2022, Adjusted EBITDA is now anticipated between $975 million and $1 billion compared with the prior guidance of $800-$830 million.
Adjusted free cash flow is expected between $310 million and $350 million (prior view: $250 million and $290 million). Net cash from operating activities is projected between $630 million and $690 million (prior view: $560 million and $620 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.
Recent Performances of Some Other Business Services Companies
Equifax (EFX - Free Report) reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same.
EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.
IQVIA Holdings (IQV - Free Report) reported solid second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.
Omnicom Group (OMC - Free Report) reported impressive second-quarter 2022 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by a strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.