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Clean Harbors (CLH) Dips 1.3% Despite Q1 Earnings and Revenue Beat

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 and EPS Surprise
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.

Profitability Performance

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.

Guidance

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.

Earnings Snapshot

Equifax EFX reported better-than-expected first-quarter 2023 results. Adjusted earnings (excluding 52 cents from non-recurring items) came in at $1.43 per share, beating the Zacks Consensus Estimate by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% on a reported basis from the year-ago figure. The top line was down 3% on a local currency basis.

OmnicomOMC reported better-than-expected first-quarter 2023 results. OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. Earnings per share increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.

Fiserv, Inc.FISV reported impressive first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Adjusted earnings per share (excluding 69 cents from non-recurring items) of $1.58 increased 12.9% year over year, beating the consensus mark by 1.3%. Earnings beat our estimate by 2.6%. Adjusted revenues of $4.28 billion beat the Zacks Consensus Estimate by 3% and increased 9.5% year over year. Revenues surpassed our estimates by 4.65%.

 

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Fiserv, Inc. (FISV) : Free Stock Analysis Report

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