Clean Harbors Inc (CLH) Wednesday reported a 25 percent increase in second-quarter profit, helped by lower operating expenses that offset a marginal drop in revenue. Revenue for the quarter missed Wall Street estimates.
Clean Harbors provided weak guidance for the third quarter and said it now expects revenue for 2014 to be at the lower end of its prior guidance.
Clean Harbors provides environmental, energy, and industrial services.
The Norwell, Massachusetts-based company posted quarterly net earnings of $28.7 million or $0.47 per share, compared with $22.9 million or $0.38 per share last year.
On average, 11 analysts polled by Thomson Reuters expected earnings of $0.44 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the second quarter edged down to $858.5 million from $860.5 million a year ago. Analysts expected revenue of $873.3 million for the quarter.
CEO Alan McKim said revenue was hurt by some project delays and reduced activity in the Oil Sands region as well as a slump in oil and gas field services.
Cost of revenue for the quarter was lower by about $7 million at $607 million, and selling and general expenses decreased to $115.7 million from $122.6 million.
For the third quarter, Clean Harbors expects revenue of $890 million to $910 million, while analysts expect $923.9 million.
For fiscal year 2014, Clean Harbors now expect revenue to be at the low end of its prior guidance of $3.5 billion to $3.6 billion. Analysts expect revenue of $3.55 billion.
Clean Harbors stock is trading at $58.60, up $0.53 or 0.91%, on a volume of 489k shares on the NYSE.
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