Why Clear Harbors Stock Got Slammed Today

Environmental and industrial services provider Clean Harbors (NYSE: CLH) wasn't a hit on the stock market Wednesday. It published its third-quarter results this morning, and the market's reception was far from welcoming. The stock was hit with a more than 11% sell-off, which was notably worse than the S&P 500 index's essentially flat performance.

Two clean third-quarter misses

Revenue for the quarter was $1.55 billion, Clean Harbors reported, representing barely above 1% growth year over year. The dynamic was similar with net income according to generally accepted accounting principles (GAAP). This came in at $118.8 million ($2.21 per share), which wasn't far higher than the year-ago profit of $115.2 million.

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Both numbers were below the average analyst estimates. Collectively, prognosticators tracking Clear Harbors stock were expecting $1.57 billion on the top line and $2.40 per share for GAAP net income.

In the earnings release, Clean Harbors attributed its growth to the performance of its technical services and Safety-Kleen, its oil recycling unit.

Shifting guidance

Clean Harbors revised its guidance for full-year 2025, and a reduction in the forecast for non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) was likely a culprit in the market's sell-off. Management is now forecasting that adjusted EBITDA will be just under $1.16 billion to almost $1.18 billion; previously it was guiding for $1.16 billion to $1.2 billion.

On a more positive note, it's anticipating more robust adjusted free cash flow. This should land at $455 million to $495 million, up from the former projection of $430 million to $490 million.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.