NYSE$CLH

Clean Harbors Inc. · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Clean Harbors reported strong third-quarter results, exceeding expectations due to the resilience of its business model and the dedication of its people.

Clean Harbors announced strong third-quarter results with revenues of $779.3 million, income from operations of $83.9 million, and net income of $54.9 million, or $0.99 per diluted share. Adjusted EBITDA was $161.2 million, including a $13.3 million benefit from government assistance programs. The company experienced a sequential pick up from the second quarter across several core lines of business, particularly within Safety-Kleen.

  • Revenues reached $779.3 million, compared to $891.7 million in the same period of 2019.
  • Net income was $54.9 million, or $0.99 per diluted share, compared to $36.4 million, or $0.65 per diluted share, for the same period in 2019.
  • Adjusted EBITDA was $161.2 million, including $13.3 million of benefit from U.S. and Canadian government assistance programs, compared with $156.6 million in the same period of 2019.
  • COVID-19 decontamination work generated $29 million in revenue, contributing to a 20% top-line increase in Field Services.

Headline financials

Total Revenue

$779M

Previous: $892M-12.6%
EPS (adj)

$0.90

Previous: $0.72+25.0%
Adjusted EBITDA

$161M

No prior period
Capital Expenditures

-$150M

Previous: -$175M+13.9%
Free Cash Flow

-$95.4M

Previous: -$138M+30.9%
Net Income

$54.9M

Previous: $36.4M+51.0%
Operating Income

$83.9M

Previous: $80.4M+4.4%
Gross Profit

$268M

Previous: $279M-4.0%
Cash & Equivalents

$476M

Previous: $282M+68.6%
Total Assets

$4.11B

Previous: $4.02B+2.1%
Stock-Based Comp

$6.66M

Previous: $5.02M+32.7%

Revenue & EPS history

Clean Harbors · Revenue · Quarterly

$779M

Q3 2020-12.6%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Clean Harbors · $779M total across 2 segments · Q3 2020

  • Environmental Services
    $507M
  • Safety-Kleen Sustainability
    $272M

Forward guidance

Clean Harbors anticipates continued success in the fourth quarter of 2020, driven by market leadership, emergency response capabilities, and the COVID-19 decontamination business. They expect a sequential uptick in incineration utilization and continued recovery in Industrial and Technical Services. Safety-Kleen's branch business is improving, and re-refineries are back online with stable base oil pricing.

Tailwinds

  • Market leadership and renowned emergency response capabilities enable capitalization on opportunities.
  • Prudent cost actions and reduced capital spending have driven record Adjusted EBITDA margins and adjusted free cash flow.
  • COVID-19 decontamination business can help hedge against potential slowdowns in other parts of the Company.
  • Anticipate a sequential uptick in incineration utilization in the fourth quarter.
  • Core service offerings for Industrial Services and Technical Services are expected to close out the year on an upward trajectory.

Headwinds

  • Virus-related project delays remain, delaying full recovery for landfills until 2021.
  • Safety-Kleen branch business remains below historical levels.
  • Potential for new shelter-in-place mandates could disrupt the recovery of Safety-Kleen's business.
  • Sensitive to the possibility of new shelter-in-place mandates that could disrupt the recovery of this business.
  • None

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-0.8%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+2.6%

Avg return

30 days after

41%

28 / 68 earnings

Positive

+17.4%

Q3 2020

Best reaction

-14.3%

Q4 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%-6.5%-9.9%
Q4 2025+2.7%+4.4%+2.5%
Q3 2025-11.5%-15.2%-7.6%
Q1 2025-0.1%+4.1%+5.9%
Q4 2024-3.0%-6.6%-13.4%
Q3 2024-12.2%-9.8%-1.3%
Q2 2024+8.0%+1.2%+9.6%
Q1 2024+8.5%+12.2%+14.3%
Q4 2023-2.6%-1.8%+4.0%
Q3 2023+0.9%+0.5%+8.6%
Q2 2023+0.3%+1.3%+4.0%
Q1 2023-6.5%-6.4%+3.3%
Q4 2022+3.2%+2.2%+7.9%
Q3 2022-8.0%-8.3%+2.1%
Q2 2022+8.8%+13.8%+18.9%
Q1 2022-6.7%-12.6%-6.3%
Q4 2021-2.1%+2.4%+15.3%
Q3 2021-10.0%-8.3%-16.3%
Q2 2021+3.0%+5.0%+6.8%
Q1 2021+5.7%+6.0%+6.2%
Q4 2020+0.4%+0.7%+0.3%
Q3 2020+17.4%+25.6%+36.2%
Q2 2020+5.9%+8.2%-4.9%
Q1 2020-5.1%-8.8%+5.5%
Q4 2019-10.6%-10.7%-38.2%
Q3 2019+5.1%+6.1%+5.4%
Q2 2019+4.2%+0.5%+0.9%
Q1 2019-6.1%-6.4%-15.6%
Q4 2018+13.3%+12.8%+19.2%
Q3 2018+1.0%+0.6%+1.4%
Q2 2018+9.7%+8.9%+20.5%
Q1 2018+12.7%+13.6%+18.1%
Q4 2017-4.0%+0.7%-2.5%
Q3 2017-0.2%-0.3%+0.4%
Q2 2017-6.0%-5.6%-6.5%
Q1 2017+2.0%+2.5%+1.2%
Q4 2016+0.8%+2.0%-3.8%
Q3 2016-4.1%-3.7%+16.6%
Q2 2016-1.4%-2.2%-7.0%
Q1 2016-5.2%
Q4 2015-1.1%
Q3 2015-5.4%
Q2 2015+1.2%
Q1 2015-2.2%
Q4 2014+8.7%
Q3 2014-1.1%
Q2 2014-0.5%
Q1 2014-1.3%
Q4 2013-14.3%
Q3 2013-6.8%
Q2 2013-5.4%
Q1 2013-7.5%
Q4 2012+1.5%
Q3 2012-0.1%
Q2 2012-6.6%
Q1 2012-5.6%
Q4 2011-1.4%
Q3 2011-6.0%
Q2 2011-2.5%
Q1 2010+3.3%
Q1 2011+0.2%
Q4 2008-2.4%
Q4 2010-2.4%
Q3 2009+0.5%
Q3 2010+0.5%
Q2 2010-1.9%
Q4 2009-1.9%
Q2 2009-1.9%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro