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Clean Harbors (CLH) Q1 Earnings & Revenues Beat Mark, Up Y/Y

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·4 min read
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Clean Harbors, Inc.CLH reported solid first-quarter 2022 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings per share of 83 cents outpaced the Zacks Consensus Estimate by 31.8% and the year-ago quarter figure by 97.6%. Total revenues of $1.17 billion beat the consensus mark by 10.5% and grew 45% year over year.

Over the past year, shares of Clean Harbors have gained 9.8% against 22.3% decline of the industry it belongs to.

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Zacks Investment Research


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Let’s check out the numbers in detail.

Revenues by Segment

Environmental Services’ revenues of $947.45 million grew 45% year over year. The uptick was backed by contributions from the HydroChemPSC acquisition, higher volumes in the company’s disposal and recycling facilities, pricing initiatives, solid demand across its service businesses, and strength across its Industrial Services businesses.

Safety-Kleen Sustainability Solutions’ revenues of $221.59 million grew 44% year over year. The uptick was backed by solid demand for the company’s base oil and blended products.

Profitability Performance

Adjusted EBITDA of $180.3 million increased 39% year over year. The adjusted EBITDA margin fell to 15.4% from 16% in the year-ago quarter.

Segment-wise, Environmental Services’ adjusted EBITDA was $183.60 million, up 30.9% year over year. Safety-Kleen Sustainability Solutions’ adjusted EBITDA was $51.88 million, up 64% 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 2022 with cash and cash equivalents of $339.58 million compared with $452.58 million at the end of the prior quarter. Inventories and supplies were $264.73 million compared with $250.69 million in the prior quarter. Long-term debt was $2.51 billion compared with $2.52 billion at the end of the prior quarter.

The company used $38.6 million of net cash from operating activities in the reported quarter. Adjusted free cash flow was $107.6 million.

Guidance

Clean Harbors has raised its 2022 guidance for adjusted EBITDA while reaffirming the same for adjusted free cash flow and net cash from operating activities.

Adjusted EBITDA is now anticipated between $800 million and $830 million compared with the prior guidance of $765-$795 million.

Adjusted free cash flow is expected between $250 million and $290 million. Net cash from operating activities is projected to be between $560 million and $620 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

Omnicom Group OMC reported impressive first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

Omnicom’s earnings of $1.39 per share beat the consensus mark by 8.6% and increased 4.5% year over year, driven by strong margin performance.

Omnicom’s total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.

Equifax EFX reported better-than-expected first-quarter 2022 results.

Equifax’s adjusted earnings of $2.22 per share beat the Zacks Consensus Estimate by 3.3% and improved 13% on a year-over-year basis. The reported figure exceeded the guided range of $2.08-$2.18.

Equifax’s revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year on a reported basis and 13% on a local-currency basis. The reported figure exceeded the guided range of $1.32-$1.34 billion.

Waste Management WM reported solid first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

Waste Management’s adjusted earnings per share of $1.29 beat the Zacks Consensus Estimate by 15.2% and improved 21.7% year over year.

Waste Management’s total revenues of $4.66 billion beat the consensus estimate by 4.6% and increased 13.4% year over year.


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