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 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.
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The article Why Clean Harbors' Shares Dropped originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool owns shares of Clean Harbors. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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