Environmental and industrial services company Clean Harbors (NYSE:CLH) will be reporting results tomorrow before the bell. Here’s what to look for.
Clean Harbors beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $1.53 billion, up 12% year on year. It was a slower quarter for the company, with full-year EBITDA guidance missing analysts’ expectations.
Is Clean Harbors a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Clean Harbors’s revenue to grow 6.6% year on year to $1.43 billion, improving from the 4.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.36 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Clean Harbors has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Clean Harbors’s peers in the environmental and facilities services segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Casella Waste Systems delivered year-on-year revenue growth of 18.9%, beating analysts’ expectations by 2.3%, and Republic Services reported revenues up 5.6%, falling short of estimates by 0.7%. Casella Waste Systems’s stock price was unchanged after the results. Republic Services was up 3%.
Read our full analysis of Casella Waste Systems’s results here and Republic Services’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the environmental and facilities services stocks have shown solid performance, the group has generally underperformed, with share prices down 4.4% on average over the last month. Clean Harbors is down 6.9% during the same time and is heading into earnings with an average analyst price target of $276.47 (compared to the current share price of $229.02).
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