Clean Harbors Inc reports results for the quarter ended September 30 - Earnings Summary

What happened

Clean Harbors Inc reported quarterly adjusted earnings of $3.93 per share, up from $2.21 a year earlier and above the $3.25 analyst expectation. Revenue rose 20.7% to $1.87 billion, beating the expected $1.73 billion, and quarterly net income was $208.1 million.

Confirmed

Global impact / market context

Higher earnings and revenue than analysts expected suggest Clean Harbors is winning more business and keeping more profit per sale, which can support the shares. The stock has already gained 33.5% this year, so expectations are elevated, and the average analyst rating remains buy.

Analyst inference

Analysts had raised their average earnings estimate by about 12% over three months, yet two analysts cut estimates in the last 30 days, showing mixed conviction. The median 12-month price target of $364.50 sits about 14.2% above the last close of $312.92, implying analysts still see upside.

Analyst inference

What to watch

1. Two analysts negatively revised earnings estimates in the last 30 days, which means some forecasters lowered their profit outlook even as the average estimate had risen about 12% over three months. Confirmed
2. Watch whether the company's strong revenue growth of 20.7% continues, since faster sales growth is what would justify analysts keeping their buy ratings and their $364.50 median price target. Proposed
3. Because the stock is up 33.5% this year and trades below the median target, further gains likely depend on Clean Harbors repeating earnings beats, so any slowdown in profit per sale could pressure the shares. Analyst inference

Evidence

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