Clean Harbors Earnings: Here’s Why Investors are Ambivalent Now

Clean Harbors, Inc. (NYSE:CLH) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Clean Harbors, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 71.67% to $0.17 in the quarter versus EPS of $0.60 in the year-earlier quarter.

Revenue: Rose 50.73% to $862.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Clean Harbors, Inc. reported adjusted EPS income of $0.17 per share. By that measure, the company missed the mean analyst estimate of $0.33. It missed the average revenue estimate of $892.79 million.

Quoting Management: “Our first-quarter results reflect the addition of Safety-Kleen, as we grew our top-line by more than 50% from the prior-year period,” said Alan S. McKim, Chairman and Chief Executive Officer. “Our margins in the quarter were significantly affected by integration-related costs and non-cash items related to acquisition accounting. As a result of the acquisition, we have realigned the Company into five new reportable segments. During the first quarter, solid performances in our Technical Services, Industrial and Field Services, and SK Environmental Services segments were more than offset by greater-than-expected weakness in our Oil Re-refining and Recycling, and Oil and Gas Field Services segments.”

Key Stats (on next page)…

Revenue increased 54.25% from $558.96 million in the previous quarter. EPS decreased 43.33% from $0.30 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.65 to a profit $0.66. For the current year, the average estimate has moved down from a profit of $2.88 to a profit of $2.67 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]