Clean Harbors Earnings: Here’s Why the Stock is Falling 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. Shares are down 10.64%.

Clean Harbors, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 13.64% to $0.38 in the quarter versus EPS of $0.44 in the year-earlier quarter.

Revenue: Rose 64.49% to $860.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Clean Harbors, Inc. reported adjusted EPS income of $0.38 per share. By that measure, the company missed the mean analyst estimate of $0.59. It missed the average revenue estimate of $884.41 million.

Quoting Management: “We delivered disappointing results for the second quarter as we experienced challenging conditions and weakness within our Oil Re-refining and Recycling segment and Oil and Gas Field Services segment,” said Alan S. McKim, Chairman and Chief Executive Officer. “Our second-quarter performance reflects a combination of factors that limited our revenue and Adjusted EBITDA including historic flooding in Western Canada, a lower percentage of blended lubricant sales within our re-refinery business, an unplanned three-week shutdown at our largest incinerator and delays in some customer plant turnarounds.”

Key Stats (on next page)…

Revenue decreased 0.19% from $862.16 million in the previous quarter. EPS decreased 2.56% from $0.39 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.92 to a profit $0.90. For the current year, the average estimate has moved down from a profit of $2.74 to a profit of $2.71 over the last ninety days.

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