Clean Harbors stock tumbles 7% following Q3 earnings miss

NORWELL, Mass. - Clean Harbors Inc . (NYSE:CLH ) shares fell sharply on Wednesday after the environmental services company reported third-quarter earnings that missed analyst expectations, despite beating on revenue.

Shares were down 7.36% following the announcement.

The company posted adjusted earnings per share of $2.12 for the quarter, falling short of the $2.18 consensus estimate. Revenue came in at $1.53 billion, surpassing analysts' projections of $1.51 billion.

Clean Harbors saw 12% YoY revenue growth in Q3, driven by a 13% increase in its Environmental Services segment. However, softer demand and pricing pressure in the base oil market weighed on results from its Safety-Kleen Sustainability Solutions business.

"We delivered profitable growth in both our operating segments while improving our consolidated Adjusted EBITDA margin by 100 basis points from the same period a year ago," said Mike Battles, Co-Chief Executive Officer.

The company revised its full-year 2024 guidance, now expecting adjusted EBITDA of $1.10 billion to $1.12 billion and adjusted free cash flow of $280 million to $320 million.

"Overall, despite some market obstacles related to base oil and refining customers, we expect to end 2024 with strong momentum across our network of disposal facilities and service offerings giving us a positive trajectory into 2025," Battles added.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source: Investing.com