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Clean Harbors, Inc. (CLH - Free Report) reported impressive second-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
The stock has lost 3.7% since the earnings release on Jul 31 despite better-than-expected earnings.
CLH’s earnings of $2.5 per share beat the Zacks Consensus Estimate by 11.3% and increased 15.5% from the year-ago quarter. Total revenues of $1.6 billion surpassed the consensus estimate by 1% and increased 11.1% on a year-over-year basis.
The stock has gained 34.7% over the past year, outperforming the 22.8% rise of the industry it belongs to and 15.5% growth of the Zacks S&P 500 composite.
Environmental Services’ (ES) revenues of $1.3 billion gained 12% from the year-ago quarter, meeting our estimate. This segment is likely to have benefited from HEPACO and organic gains attributed to volume and pricing.
Revenues from Safety-Kleen Sustainability Solutions (SKSS) amounted to $255.3 million, increasing 5% on a year-over-year basis and beating our estimate of $230.9 million. High demand for containerized waste is anticipated to have raised this segment’s revenues.
Profitability Performance
Adjusted EBITDA of $327.8 million rose 14% from the year-ago quarter and surpassed our estimated 303.6 million. The adjusted EBITDA margin was 21.1%, up 50 basis points from the year-ago quarter. Strength in the ES segment is expected to have driven the margin.
Segment-wise, ES adjusted EBITDA amounted to $359.9 million, increasing 17.8% year over year. The figure beat our estimate of $339.5 million. Adjusted EBITDA for SKSS was $51.5 million, down 3.6% from the year-ago quarter and outpacing our estimate of $44.9 million.
Balance Sheet & Cash Flow
Clean Harbors exited the quarter with cash and cash equivalents of $402 million compared with $337.9 million at the end of the preceding quarter. Inventories and supplies were $365.4 million compared with $354.3 million in the first quarter of 2024.
Long-term debt (less current portion) was $2.8 billion, flat with the previous quarter. CLH generated $216 million in net cash from operating activities. The capital expenditure amounted to $135.1 million. The adjusted free cash flow utilized was $84.2 million.
2024 Guidance
For 2024, CLH’s guidance for adjusted EBITDA was raised to $1.125-$1.165 billion from the $1.1-$1.15 billion mentioned at the end of the preceding quarter. The adjusted free cash flow guidance was updated to $350-$390 million from the $340-$400 million provided at the end of the first quarter of 2024. CapEx is projected to be $410-$440 million.
S&P Global Inc. (SPGI - Free Report) reported impressive second-quarter results.
SPGI’s adjusted EPS (excluding 82 cents from non-recurring items) of $4.04 surpassed the Zacks Consensus Estimate by 10.1% and increased 29.5% year over year. Revenues of $3.5 billion beat the consensus estimate by 3.4% and improved 14.5% year over year.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported mixed second-quarter 2024 results.
IPG’s adjusted earnings (excluding 4 cents from non-recurring items) of 61 cents per share met the Zacks Consensus Estimate but decreased 17.6% on a year-over-year basis. Revenues before billable expenses (net revenues) of $2.3 billion surpassed the consensus estimate marginally but declined 12.7% year over year. Total revenues of $2.7 billion rose 1.6% year over year and surpassed the Zacks Consensus Estimate of $2.3 billion.
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Clean Harbors (CLH) Stock Declines 4% Despite Q2 Earnings Beat
Clean Harbors, Inc. (CLH - Free Report) reported impressive second-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
The stock has lost 3.7% since the earnings release on Jul 31 despite better-than-expected earnings.
CLH’s earnings of $2.5 per share beat the Zacks Consensus Estimate by 11.3% and increased 15.5% from the year-ago quarter. Total revenues of $1.6 billion surpassed the consensus estimate by 1% and increased 11.1% on a year-over-year basis.
The stock has gained 34.7% over the past year, outperforming the 22.8% rise of the industry it belongs to and 15.5% growth of the Zacks S&P 500 composite.
Clean Harbors, Inc. Price and EPS Surprise
Clean Harbors, Inc. price-eps-surprise | Clean Harbors, Inc. Quote
Segmental Revenues
Environmental Services’ (ES) revenues of $1.3 billion gained 12% from the year-ago quarter, meeting our estimate. This segment is likely to have benefited from HEPACO and organic gains attributed to volume and pricing.
Revenues from Safety-Kleen Sustainability Solutions (SKSS) amounted to $255.3 million, increasing 5% on a year-over-year basis and beating our estimate of $230.9 million. High demand for containerized waste is anticipated to have raised this segment’s revenues.
Profitability Performance
Adjusted EBITDA of $327.8 million rose 14% from the year-ago quarter and surpassed our estimated 303.6 million. The adjusted EBITDA margin was 21.1%, up 50 basis points from the year-ago quarter. Strength in the ES segment is expected to have driven the margin.
Segment-wise, ES adjusted EBITDA amounted to $359.9 million, increasing 17.8% year over year. The figure beat our estimate of $339.5 million. Adjusted EBITDA for SKSS was $51.5 million, down 3.6% from the year-ago quarter and outpacing our estimate of $44.9 million.
Balance Sheet & Cash Flow
Clean Harbors exited the quarter with cash and cash equivalents of $402 million compared with $337.9 million at the end of the preceding quarter. Inventories and supplies were $365.4 million compared with $354.3 million in the first quarter of 2024.
Long-term debt (less current portion) was $2.8 billion, flat with the previous quarter. CLH generated $216 million in net cash from operating activities. The capital expenditure amounted to $135.1 million. The adjusted free cash flow utilized was $84.2 million.
2024 Guidance
For 2024, CLH’s guidance for adjusted EBITDA was raised to $1.125-$1.165 billion from the $1.1-$1.15 billion mentioned at the end of the preceding quarter. The adjusted free cash flow guidance was updated to $350-$390 million from the $340-$400 million provided at the end of the first quarter of 2024. CapEx is projected to be $410-$440 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
S&P Global Inc. (SPGI - Free Report) reported impressive second-quarter results.
SPGI’s adjusted EPS (excluding 82 cents from non-recurring items) of $4.04 surpassed the Zacks Consensus Estimate by 10.1% and increased 29.5% year over year. Revenues of $3.5 billion beat the consensus estimate by 3.4% and improved 14.5% year over year.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported mixed second-quarter 2024 results.
IPG’s adjusted earnings (excluding 4 cents from non-recurring items) of 61 cents per share met the Zacks Consensus Estimate but decreased 17.6% on a year-over-year basis. Revenues before billable expenses (net revenues) of $2.3 billion surpassed the consensus estimate marginally but declined 12.7% year over year. Total revenues of $2.7 billion rose 1.6% year over year and surpassed the Zacks Consensus Estimate of $2.3 billion.