Why Clean Harbors Inc's Shares Plunged Today
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 Clean Harbors Inc fell 15% today after the company announced fourth-quarter earnings.
So what: Revenue for the quarter was up 57.3% from a year ago to $879.4 million, but still fell short of the $894.2 million analysts expected. Earnings per share were $0.44, which also fell below expectations of $0.55 from Wall Street.
Now what: Management said weather-related slowdowns in energy, industrial, and field services all affected business in the fourth quarter. This is a common theme across businesses this year, but it's impacting guidance for Q1 as well. Clean Harbors' revenue is expected to be just $820-$840 million next quarter, below the $904 million estimate, but that full-year guidance of $3.5-$3.6 billion in revenue was in line with estimates.
I don't think the bad quarter or two is a major reason to panic, because a lot of the weakness is related to weather. I see this as a great buying opportunity for investors looking at Lean Harbors right now.
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The article Why Clean Harbors Inc's Shares Plunged Today originally appeared on Fool.com.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 may not 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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