Environmental and industrial services company Clean Harbors (NYSE: CLH) will be announcing earnings results this Wednesday morning. Here’s what you need to know.
Clean Harbors beat analysts’ revenue expectations last quarter, reporting revenues of $1.74 billion, up 11.9% year on year. It was a stunning quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
Is Clean Harbors a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Clean Harbors’s revenue to grow 11.4% year on year, improving from the 1.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Clean Harbors has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Clean Harbors’s peers in the environmental and facilities services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Waste Connections delivered year-on-year revenue growth of 7.3%, beating analysts’ expectations by 1.2%, and Rollins reported revenues up 6.2%, falling short of estimates by 1.7%. Waste Connections traded up 9.9% following the results while Rollins was also up 5.6%.
Read our full analysis of Waste Connections’s results here and Rollins’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the environmental and facilities services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.2% on average over the last month. Clean Harbors is up 1.2% during the same time and is heading into earnings with an average analyst price target of $364.67 (compared to the current share price of $317.11).
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