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Clean Harbors (CLH) Beats on Q3 Earnings & Revenues, Ups View

Zacks Equity Research
·3-min read

Clean Harbors, Inc.CLH reported solid third-quarter 2021 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings per share of $1.14 outpaced the Zacks Consensus Estimate by 17.5% and increased 26.7% year over year. Total revenues of $951.5 million beat the consensus mark by 3.6% and grew 22% year over year.

So far this year, shares of Clean Harbors have gained 40.9% against the 2% decline of the industry it belongs to.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

Let’s check out the numbers in detail.

Revenues by Segment

Environmental Services’ revenues of $745.63 million grew 14.6% year over year. The uptick was backed by solid demand of the company’s disposal and recycling services, and strength across many of its service businesses.

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Safety-Kleen Sustainability Solutions’ revenues of $205.79 million grew 59.9% year over year. The uptick was backed by the solid demand of the company’s base and blended oil, which led to a healthy pricing environment.

Profitability Performance

Adjusted EBITDA of $185.1 million increased 10% year over year. The adjusted EBITDA margin fell to 19.5% from 21.5% in the year-ago quarter.

Segment-wise, Environmental Services’ adjusted EBITDA was $166.5 million, down 7.5% year over year. Safety-Kleen Sustainability Solutions’ adjusted EBITDA was $70.8 million, up more than 100% year over year.

Clean Harbors, Inc. Price, Consensus and EPS Surprise

Clean Harbors, Inc. price-consensus-eps-surprise-chart | Clean Harbors, Inc. Quote

Balance Sheet & Cash Flow

Clean Harbors exited third-quarter 2021 with cash and cash equivalents of $646.66 million compared with $595.57 million at the end of the prior quarter. Inventories and supplies were $228.68 million compared with $215.73 million in the prior quarter. Long-term debt of $1.55 billion was flat sequentially.

The company generated $102.8 million in net cash from operating activities in the reported quarter. Adjusted free cash flow was $61.1 million.

Guidance

Clean Harbors has raised its guidance for the year. Adjusted EBITDA is anticipated between $655 million and $675 million compared with the previously mentioned $620-$650 million. Net income is expected between $171 million and $196 million compared with the earlier mentioned $159-$163 million.

Adjusted free cash flow is expected between $310 million and $330 million compared with the previously mentioned $285-$315 million. Net cash from operating activities is projected between $500 million and $540 million compared with the earlier stated $475-$525 million.

Currently, Clean Harbors sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Performances of Other Business Services Companies

Equifax’s EFX third-quarter 2021 adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6% but declined on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6% and improved 14.5% year over year on a reported and 14% on a local-currency basis.

IQVIA’s IQV third-quarter 2021 adjusted earnings per share of $2.17 beat the consensus mark by 1.9% and improved 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1% and increased 21.7% year over year on a reported and 21.1% on a constant-currency basis.

Omnicom’s OMC third-quarter 2021 adjusted earnings of $1.65 per share beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.


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Equifax, Inc. (EFX) : Free Stock Analysis Report

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Zacks Investment Research