US$198 - That's What Analysts Think Clean Harbors, Inc. (NYSE:CLH) Is Worth After These Results
The annual results for Clean Harbors, Inc. (NYSE:CLH) were released last week, making it a good time to revisit its performance. It was a credible result overall, with revenues of US$5.4b and statutory earnings per share of US$6.95 both in line with analyst estimates, showing that Clean Harbors is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Clean Harbors
Taking into account the latest results, the current consensus from Clean Harbors' 13 analysts is for revenues of US$5.64b in 2024. This would reflect a modest 4.4% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 6.8% to US$7.48. Before this earnings report, the analysts had been forecasting revenues of US$5.69b and earnings per share (EPS) of US$7.95 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
Despite cutting their earnings forecasts,the analysts have lifted their price target 5.8% to US$198, suggesting that these impacts are not expected to weigh on the stock's value in the long term. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Clean Harbors at US$213 per share, while the most bearish prices it at US$175. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Clean Harbors is an easy business to forecast or the the analysts are all using similar assumptions.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Clean Harbors' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 4.4% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.5% per year. Factoring in the forecast slowdown in growth, it seems obvious that Clean Harbors is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Clean Harbors going out to 2026, and you can see them free on our platform here..
You still need to take note of risks, for example - Clean Harbors has 2 warning signs we think you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
