Clean Harbors (NYSE: CLH) reported Q3 EPS of $0.59, $0.16 better than the analyst estimate of $0.43. Revenue for the quarter came in at $843.2 million versus the consensus estimate of $846.07 million.

Business Outlook and Financial Guidance

“We enter the final quarter of 2018 with momentum supported by an array of favorable market trends and internal initiatives that should benefit us in 2019 and beyond,” McKim said. “The chemical and manufacturing renaissance underway in the United States, which is being driven by the low cost of natural gas, should drive continued growth of high-value waste streams into our disposal network. A focus by customers, as well as the Environmental Protection Agency (EPA), in addressing long-term environmental liabilities should generate large-scale waste project opportunities for us in the coming years. Given the influence of the IMO 2020 Rule, we expect to see a ramp up in demand for our specialized industrial services, particularly within the refinery market. The addition of Veolia’s assets should amplify those growth prospects.

“We remain optimistic about our ability to continue to effectively manage the spread in our Safety-Kleen re-refinery business. In addition, we believe that the value proposition for our direct lubricant sales remains compelling. Overall, we continue to see a number of opportunities to drive profitable growth and enhance margins across our businesses through better pricing, cross-selling, higher utilization and cost controls. We look forward to a strong conclusion to the year,” McKim said.

Based on its recent financial performance and current market conditions, Clean Harbors revised its full-year 2018 Adjusted EBITDA guidance to a range of $470 million to $490 million, compared with its prior range of $460 million to $490 million. On a GAAP basis, the Company’s revised guidance is based on projected 2018 net income in the range of $46 million to $59 million. A reconciliation of the Company’s Adjusted EBITDA guidance to net income guidance is included below. Clean Harbors also narrowed its adjusted free cash flow guidance range to $140 million to $160 million, compared with its prior range of $135 million to $165 million, which is based on projected 2018 net cash from operating activities in the range of $310 million to $350 million.

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