Clean Harbors (CLH) Stock up 2.3% Post Q4 Earnings Beat
Clean Harbors, Inc. CLH reported solid fourth-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Strong results impressed investors as the stock rose 2.3% since earnings release on Mar 1.
Adjusted earnings per share (excluding 8 cents from non-recurring items) of $1.44 outpaced the Zacks Consensus Estimate by 11.6% and the year-ago quarter’s figure by 61.8%. Total revenues of $1.28 billion beat the Zacks Consensus Estimate by 2.5% and grew 14.2% year over year.
Let’s check out the numbers in detail.
Revenues by Segment
Environmental Services’ (ES) 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.
Safety-Kleen Sustainability Solutions’ (SKSS) revenues of $238.4 million grew 9% year over year.
Clean Harbors, Inc. Price, Consensus and EPS Surprise
Clean Harbors, Inc. price-consensus-eps-surprise-chart | Clean Harbors, Inc. Quote
Profitability Performance
Adjusted EBITDA of $224.2 million increased 29% year over year. The adjusted EBITDA margin rose to 17.5% from 15.6% in the year-ago quarter.
Segment-wise, ES’ adjusted EBITDA was $239.4 million, up 35.3% year over year. SKSS’ adjusted EBITDA was $54.3 million, down 11.9% year over year.
Balance Sheet & Cash Flow
Clean Harbors exited fourth-quarter 2022 with cash and cash equivalents of $492.6 million compared with $449 million at the end of the prior quarter. Inventories and supplies were $324.99 million compared with $294.2 million in the prior quarter. Long-term debt was $2.41 billion compared with $2.51 recorded in the prior quarter.
CLH generated $268.7 million of net cash from operating activities in the reported quarter. Adjusted free cash flow was $171.8 million.
Guidance
For the first quarter of 2023, Clean Harbors expects Adjusted EBITDA to increase approximately 20% from the prior year.
For 2023, adjusted EBITDA is anticipated between $1.010 billion and $1.050 billion.
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.
Currently, Clean Harbors carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
The following stocks from the Business Service sector reported better-than-expected fourth-quarter results.
Gartner, Inc. IT, currently carrying a Zacks Rank #3 (Hold), reported better-than-expected fourth-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate. Adjusted earnings (excluding 49 cents from non-recurring items) per share of $3.70 beat the Zacks Consensus Estimate by 44% and increased 23.8% year over year. IT’s revenues of $1.5 billion beat the Zacks Consensus Estimate by 2.6% and improved 15.2% year over year on a reported basis and 20% on a foreign-currency-neutral basis.
Aptiv PLC APTV, currently carrying a Zacks Rank of 3, reported better-than-expected fourth-quarter 2022 results. Adjusted earnings (excluding 41 cents from non-recurring items) of $1.27 per share beat the Zacks Consensus Estimate by 6.7% and increased more than 100% on a year-over-year basis. APTV’s revenues surpassed the Zacks Consensus Estimate by 6% and increased 12.2% year over year.
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