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Despite the earnings miss, the stock has gained 10.4% since the earnings release on Oct. 30, 2024.
CLH’s earnings of $2.1 per share lagged the Zacks Consensus Estimate by 1.4% but increased 26.2% from the year-ago quarter’s actual. Total revenues of $1.5 billion surpassed the consensus estimate by 1.3% and increased 12% on a year-over-year basis.
The stock has gained 23.6% over the past six months, outperforming the 10.8% rise of the industry it belongs to and 15% growth of the Zacks S&P 500 composite.
Six Months Price Performance
Image Source: Zacks Investment Research
CLH’s Segmental Revenues
Environmental Services’ (ES) revenues of $1.3 billion grew 13.2% from the year-ago quarter, meeting our estimate. Strong demand for disposal and recycling services due to record volumes of containerized waste and positive pricing momentum has driven this segment’s revenues.
Revenues from Safety-Kleen Sustainability Solutions (SKSS) amounted to $232.1 million, increasing 5.9% on a year-over-year basis and beating our estimate of $230.9 million.
Clean Harbors’ Profitability Performance
Adjusted EBITDA of $301.8 million grew 18.4% from the year-ago quarter and missed our projection of $303.6 million. The adjusted EBITDA margin was 19.7%, up 100 basis points from the year-ago quarter. Strength in the ES segment is expected to have driven the margin.
Segment-wise, adjusted EBITDA for ES amounted to $332.5 million, increasing 15.1% year over year. The figure missed our estimate of $339.5 million. Adjusted EBITDA for SKSS was $41.2 million, up 32.4% from the year-ago quarter and outpacing our estimate of $44.9 million.
Balance Sheet & Cash Flow of CLH
Clean Harbors exited the quarter with cash and cash equivalents of $513.4 compared with $402 million at the end of the preceding quarter. Inventories and supplies were $376.6 million compared with $365.4 million in the second quarter of 2024.
Long-term debt (less current portion) was $2.8 billion, flat with the previous quarter. CLH generated $239.2 million in net cash from operating activities. The capital expenditure amounted to $96.8 million. The adjusted free cash flow utilized was $144.5 million.
CLH’s 2024 Guidance
For 2024, Clean Harbors’ guidance for adjusted EBITDA was lowered to $1.100-$1.120 billion compared with the $1.125-$1.165 billion given in the previous quarter. The adjusted free cash flow guidance was reduced to $280-$320 million from the $350-$390 million provided in the preceding quarter. CapEx is projected to be $410-$440 million.
Clean Harbors currently carries a Zacks Rank #5 (Sell).
FI’s adjusted earnings per share (excluding $1.3 from non-recurring items) of $2.3 beat the consensus mark by 2.2% and gained 17.4% year over year. Adjusted revenues of $4.9 billion missed the consensus estimate by a slight margin but rose a tad on a year-over-year basis.
VRSK’s adjusted earnings (excluding 13 cents from non-recurring items) were $1.7 per share, surpassing the Zacks Consensus Estimate by 4.4% and growing 9.9% from the year-ago quarter. Total revenues of $725.3 million beat the consensus estimate marginally and increased 7% on a year-over-year basis.
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Clean Harbors Stock Price Increases 10% Despite Q3 Earnings Miss
Clean Harbors, Inc. (CLH - Free Report) reported mixed third-quarter 2024 results, wherein earnings missed the Zacks Consensus Estimate while revenues beat the same.
See Zacks Earnings Calendar to stay ahead of market-making news.
Despite the earnings miss, the stock has gained 10.4% since the earnings release on Oct. 30, 2024.
CLH’s earnings of $2.1 per share lagged the Zacks Consensus Estimate by 1.4% but increased 26.2% from the year-ago quarter’s actual. Total revenues of $1.5 billion surpassed the consensus estimate by 1.3% and increased 12% on a year-over-year basis.
The stock has gained 23.6% over the past six months, outperforming the 10.8% rise of the industry it belongs to and 15% growth of the Zacks S&P 500 composite.
Six Months Price Performance
CLH’s Segmental Revenues
Environmental Services’ (ES) revenues of $1.3 billion grew 13.2% from the year-ago quarter, meeting our estimate. Strong demand for disposal and recycling services due to record volumes of containerized waste and positive pricing momentum has driven this segment’s revenues.
Revenues from Safety-Kleen Sustainability Solutions (SKSS) amounted to $232.1 million, increasing 5.9% on a year-over-year basis and beating our estimate of $230.9 million.
Clean Harbors’ Profitability Performance
Adjusted EBITDA of $301.8 million grew 18.4% from the year-ago quarter and missed our projection of $303.6 million. The adjusted EBITDA margin was 19.7%, up 100 basis points from the year-ago quarter. Strength in the ES segment is expected to have driven the margin.
Segment-wise, adjusted EBITDA for ES amounted to $332.5 million, increasing 15.1% year over year. The figure missed our estimate of $339.5 million. Adjusted EBITDA for SKSS was $41.2 million, up 32.4% from the year-ago quarter and outpacing our estimate of $44.9 million.
Balance Sheet & Cash Flow of CLH
Clean Harbors exited the quarter with cash and cash equivalents of $513.4 compared with $402 million at the end of the preceding quarter. Inventories and supplies were $376.6 million compared with $365.4 million in the second quarter of 2024.
Long-term debt (less current portion) was $2.8 billion, flat with the previous quarter. CLH generated $239.2 million in net cash from operating activities. The capital expenditure amounted to $96.8 million. The adjusted free cash flow utilized was $144.5 million.
CLH’s 2024 Guidance
For 2024, Clean Harbors’ guidance for adjusted EBITDA was lowered to $1.100-$1.120 billion compared with the $1.125-$1.165 billion given in the previous quarter. The adjusted free cash flow guidance was reduced to $280-$320 million from the $350-$390 million provided in the preceding quarter. CapEx is projected to be $410-$440 million.
Clean Harbors currently carries a Zacks Rank #5 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of CLH’s Peers
Fiserv, Inc. (FI - Free Report) reported mixed third-quarter 2024 results.
FI’s adjusted earnings per share (excluding $1.3 from non-recurring items) of $2.3 beat the consensus mark by 2.2% and gained 17.4% year over year. Adjusted revenues of $4.9 billion missed the consensus estimate by a slight margin but rose a tad on a year-over-year basis.
Verisk Analytics Inc. (VRSK - Free Report) posted impressive third-quarter 2024 results.
VRSK’s adjusted earnings (excluding 13 cents from non-recurring items) were $1.7 per share, surpassing the Zacks Consensus Estimate by 4.4% and growing 9.9% from the year-ago quarter. Total revenues of $725.3 million beat the consensus estimate marginally and increased 7% on a year-over-year basis.