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Why Is Clean Harbors (CLH) Down 0.1% Since Last Earnings Report?
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It has been about a month since the last earnings report for Clean Harbors (CLH - Free Report) . Shares have lost about 0.1% in that time frame, underperforming 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 the most recent earnings report in order to get a better handle on the important drivers.
Clean Harbors' Q2 Earnings Beat Estimates
Clean Harbors reported impressive second-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Clean Harbors has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, 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 A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions has been net zero. Notably, Clean Harbors has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Clean Harbors belongs to the Zacks Waste Removal Services industry. Another stock from the same industry, Stericycle (SRCL - Free Report) , has gained 0.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Stericycle reported revenues of $661.6 million in the last reported quarter, representing a year-over-year change of -1.2%. EPS of $0.61 for the same period compares with $0.43 a year ago.
Stericycle is expected to post earnings of $0.58 per share for the current quarter, representing a year-over-year change of +34.9%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Stericycle. Also, the stock has a VGM Score of B.
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Why Is Clean Harbors (CLH) Down 0.1% Since Last Earnings Report?
It has been about a month since the last earnings report for Clean Harbors (CLH - Free Report) . Shares have lost about 0.1% in that time frame, underperforming 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 the most recent earnings report in order to get a better handle on the important drivers.
Clean Harbors' Q2 Earnings Beat Estimates
Clean Harbors reported impressive second-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Clean Harbors has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, 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 A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions has been net zero. Notably, Clean Harbors has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Clean Harbors belongs to the Zacks Waste Removal Services industry. Another stock from the same industry, Stericycle (SRCL - Free Report) , has gained 0.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Stericycle reported revenues of $661.6 million in the last reported quarter, representing a year-over-year change of -1.2%. EPS of $0.61 for the same period compares with $0.43 a year ago.
Stericycle is expected to post earnings of $0.58 per share for the current quarter, representing a year-over-year change of +34.9%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Stericycle. Also, the stock has a VGM Score of B.