Clean Harbors Stock Plummets 7% After Missing Q3 Earnings Expectations

NORWELL, Mass. - Clean Harbors Inc. (NYSE:CLH) shares experienced a sharp decline on Wednesday after the environmental services company's third-quarter earnings fell short of analyst expectations. However, the company exceeded revenue expectations. Following the announcement, shares fell by 7.36%.

The company reported adjusted earnings of $2.12 per share for the quarter, falling below the consensus estimate of $2.18. Revenue totaled $1.53 billion, surpassing analysts' projections of $1.51 billion.

Clean Harbors recorded a 12% year-over-year revenue increase in the third quarter, driven by a 13% growth in the Environmental Services segment. However, weaker demand and pricing pressure in the base oil market negatively impacted results from the Safety-Kleen Sustainability Solutions business.

Co-CEO Mike Battles stated, "While achieving profitable growth in both of our operating segments, we improved our consolidated Adjusted EBITDA margin by 100 basis points compared to the same period last year."

The company revised its guidance for the full year 2024, expecting adjusted EBITDA to be between $1.10 billion and $1.12 billion and adjusted free cash flow to be between $280 million and $320 million.

Battles added, "Overall, despite some market headwinds related to base oil and refined customers, we expect to finish 2024 with strong momentum across our waste disposal facilities and service offerings, entering 2025 on a positive trajectory."