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Clean Harbors (CLH) Beats on Q1 Earnings & Revenues, View Up

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

Adjusted earnings per share of 42 cents outpaced the Zacks Consensus Estimate by 61.5% and increased 50% year over year. Total revenues of $808.1 million beat the consensus mark by 2.7% and declined 6% year over year due to the unprecedented market conditions.

So far this year, shares of Clean Harbors have gained 23.2%, outperforming the 17% surge of the industry it belongs to.

Let’s check out the numbers in detail.

Revenues by Segment

Environmental Services revenues of $654.6 million declined 7.2% year over year. Safety-Kleen Sustainability Solutions revenues of $153.47 million grew 0.1% year over year.

Profitability Performance

Adjusted EBITDA of $129.45 million increased 2.8% year over year. Adjusted EBITDA margin increased 130 basis points (bps) year over year to 16%. The uptick was aided by greater volumes of high-value waste streams in the company’s disposal network and higher pricing environment for base oil, coupled with ongoing cost-control and productivity initiatives.

Segment wise, Environmental Services’ adjusted EBITDA was $140.25 million, down 3.8% year over year. Safety-Kleen Sustainability Solutions’ adjusted EBITDA of $31.63 million, up 30.7% year over year.

Clean Harbors, Inc. Price, Consensus and EPS Surprise

Clean Harbors, Inc. Price, Consensus and EPS Surprise
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 first-quarter 2021 with cash and cash equivalents of $496.38 million compared with $519.10 million at the end of the prior quarter. Inventories and supplies were $219.49 million compared with $220.49 million in the prior quarter. Long-term debt of $1.55 billion was flat sequentially.

The company generated $103 million in net cash from operating activities in the reported quarter. Adjusted free cash flow was $62.29 million.

Guidance

For the second quarter of 2021, Clean Harbors expects adjusted EBITDA to register 15-20% year-over-year growth.

Clean Harbors has raised its guidance for the full year. Adjusted EBITDA is now anticipated between $560 million and $600 million compared with the prior-guided range of $545-$585 million. Net income is now anticipated between $116 million and $157 million, compared with the prior-guided range of $105-$146 million.

Adjusted free cash flow is now expected between $230 million and $270 million, compared with the prior-guided range of $215-$255 million. Net cash from operating activities is now projected between $415 million and $475 million, compared with the prior-guided range of $400-$460 million.

Currently, Clean Harbors carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Business Services Companies

Equifax’s EFX first-quarter 2021 adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and improved on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus estimate by 7.9% and improved 26.6% year over year on a reported basis as well as on a local-currency basis.

Robert Half’s RHI first-quarter 2021 earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3% but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.

Omnicom’s OMC first-quarter 2021 adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and marginally increased year over year.

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