Clean Harbors, Inc. CLH reported solid first-quarter 2023 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Better-than-expected results failed to impress investors as the stock fell 1.3% since the earnings release on May 3.
Adjusted earnings per share (excluding 3 cents from non-recurring items) of $1.36 outpaced the Zacks Consensus Estimate by 18.3%, our estimate by 10.6% and the year-ago quarter’s figure by 63.9%. Total revenues of $1.31 billion beat the Zacks Consensus Estimate by 5.4% and our estimate by 9.2%. Earnings grew 11.8% year over year.
Clean Harbors, Inc. Price, Consensus and EPS Surprise
Clean Harbors, Inc. price-consensus-eps-surprise-chart | Clean Harbors, Inc. Quote
Shares of Clean Harbors have grown 50.8% in the trailing 12-month period, compared to its industry’s 4.1% increase.
Let’s check out the numbers in detail.
Revenues by Segment
The Environmental Services (ES) segment’s revenues of $1.04 billion, grew 15% year over year. The uptick was backed by higher volumes of high-value waste streams, pricing initiatives and strength in its Industrial Services businesses.
The Safety-Kleen Sustainability Solutions (SKSS) segment’s revenues of $238.4 million, grew 9% year over year.
Adjusted EBITDA of $215.1 million increased 19% year over year. The adjusted EBITDA margin rose to 16.5% from 15.4% in the year-ago quarter.
Segment-wise, ES’ adjusted EBITDA was $228.4 million, up 24% year over year. SKSS’ adjusted EBITDA was $41.4 million, down 20% year over year.
Balance Sheet & Cash Flow
Clean Harbors exited first-quarter 2023 with cash and cash equivalents of $304.3 million, compared with $492.6 million at the end of the prior quarter. Inventories and supplies were $322.4 million, compared with $324.9 million in the prior quarter. Long-term debt was $2.41 billion, flat with the prior quarter reported figure.
CLH generated $28 million in net cash from operating activities in the reported quarter. Adjusted free cash flow was negative $51.8 million.
For 2023, adjusted EBITDA is anticipated between $1.02 billion and $1.06 billion, up from the previous range of $1.01 billion and $1.05 billion. The rise reflects the company’s acquisition of Thompson Industrial Services.
Adjusted free cash flow for the current year is expected between $305 million and $345 million. Net cash from operating activities is projected in the range of $705-$765 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.
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