Why Clean Harbors' Shares Dropped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of environmental cleanup company Clean Harbors (NYSE: CLH  ) fell as much as 12% in trading today after reporting earnings.

So what: Revenue rose 65% in the second quarter to $860.5 million, because of the Safety-Kleen acquisition last year, beating estimates of $884.4 million. But earnings per share of $0.38 fell well short of the $0.59 estimate from Wall Street and management also lowered guidance.  

Now what: For the full year, management now expects Clean Harbors to generate revenue of $3.5 billion to $3.55 billion, down $120 million from its own previous guidance. It's also not a good sign to lower guidance when you beat revenue estimates, as the company did during the second quarter. Flooding in Canada was blamed for the shortfall in revenue, and I'd stay away for now until conditions stabilize.

Interested in more info on Clean Harbors? Add it to your watchlist by clicking here.


Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2584778, ~/Articles/ArticleHandler.aspx, 11/24/2014 7:33:19 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement