Clean Harbors, Inc. (NYSE:CLH) is scheduled to report Q3 earnings results on November 4, 2020.
The company is expected to report earnings of $0.27/share on revenue of $774.5 million. The consensus earnings per share (EPS) of $0.27/share is based on a poll of 11 analysts and represents a decline in eps of −61.8% over the same quarter last year, when the company reported earnings of $0.72/share.
The revenue forecast of $774.5 million based on a poll of 9 analysts implies a year-over-year (YoY) decline in revenue of −13.1%. Last year the company reported $891.7 million in revenue for the quarter.
| Metric | Expected | Prior Year | YoY Change |
|---|---|---|---|
| Revenue | $774.45 | $891.67 | −13.1% |
| EPS | $0.27 | $0.72 | −61.8% |
Earnings Call Trends
Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarter.
What are your expectations from Clean Harbors, Inc. for earnings this quarter? Let us know in the comments!
| Quarter | Expected | Reported | Surprise | Result |
|---|---|---|---|---|
| Q2, 2020 | -$0.07 | $0.52 | 888.5% | Beat |
| Q1, 2020 | $0.09 | $0.28 | 207.5% | Beat |
| Q4, 2019 | $0.45 | $0.42 | −6.9% | Missed |
| Q3, 2019 | $0.71 | $0.72 | 1.7% | Beat |
| Q2, 2019 | $0.62 | $0.66 | 7.2% | Beat |
| Q1, 2019 | $0.03 | $0.09 | 204.8% | Beat |
| Q4, 2018 | $0.17 | $0.24 | 44.6% | Beat |
| Q3, 2018 | $0.43 | $0.59 | 38.6% | Beat |
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 5.9%.
| Report Date | Price Day Prior | Price Next Day | Change % | Result |
|---|---|---|---|---|
| August 5, 2020 | $60.37 | $63.93 | 5.9% | Increase |
| April 29, 2020 | $56.31 | $53.43 | −5.1% | Decline |
| February 26, 2020 | $81.36 | $72.77 | −10.6% | Decline |
| October 30, 2019 | $78.45 | $82.46 | 5.1% | Increase |
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.99, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.99 implies a 0.1% chance of earnings manipulation.
Fundamentals And Technical Analysis
Clean Harbors, Inc. is currently trading at $53.95/share, down −3.4% for the day. The company is trading at approximately 60.9% of its 52-week high of $88.40/share. The company’s stock price is down −15.6% since the last earnings report and down −3.7% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 42.81 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 29.60 and a forward P/E multiple of 41.92.
Clean Harbors, Inc.’s current share price also implies a price-to-book (P/B) multiple of 2.39. The following table summarizes some other key fundamental ratios:
| Metric | Value |
|---|---|
| Last Reported Fiscal Period Key | FY2020.Q2 |
| Period End Date | June 30, 2020 |
| Stock Price (Current) | $53.95 |
| P/E Ratio | 29.6x |
| P/E Ratio (Fwd) | 41.9x |
| PEG Ratio | 1.5 |
| Total Debt / Total Capital | 37.0% |
| Levered Free Cash Flow | $224.5 million |
| EV / EBITDA | 8.0x |
Clean Harbors, Inc. is a mid-cap stock with a market capitalization of $3.109 billion and a total enterprise value of $4.429 billion. The company operates in the Industrials sector and the Commercial Services & Supplies industry.
Clean Harbors, Inc. provides environmental, energy, and industrial services in North America. The company operates through two segments, Environmental Services and Safety-Kleen. The Environmental Services segment collects, transports, treats, and disposes hazardous and non-hazardous waste, such as resource recovery, physical treatment, fuel blending, incineration, landfill disposal, wastewater treatment, lab chemicals disposal, and explosives management services; and CleanPack services, which comprise collection, identification and categorization, specialized packaging, transportation, and disposal of laboratory chemicals and household hazardous waste. It also provides industrial maintenance and specialty industrial services, and utilizes specialty equipment and resources that performs field services. The Safety-Kleen segment offers specially designed parts washers; automotive and industrial cleaning products, such as degreasers, glass and floor cleaners, hand cleaners, absorbents, antifreeze, windshield washer fluids, mats, and spill kits; pickup and transportation services for hazardous and non-hazardous containerized waste for recycling or disposal; and vacuum services to remove solids, residual oily water and sludge, and other fluids from customers oil/water separators, sumps, and collection tanks, as well as remove and collect waste fluids found at metal fabricators, auto maintenance providers, and general manufacturers. This segment also manufactures, formulates, packages, distributes, and markets lubricants; and provides containerized waste, vac services, used motor oil collection, and contract blending and packaging services. Clean Harbors, Inc. was founded in 1980 and is headquartered in Norwell, Massachusetts.
