Shareholders might have noticed that Clean Harbors, Inc. (NYSE:CLH) filed its annual result this time last week. The early response was not positive, with shares down 5.1% to US$218 in the past week. Clean Harbors reported US$5.9b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$7.42 beat expectations, being 2.8% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Clean Harbors

Following the latest results, Clean Harbors' 13 analysts are now forecasting revenues of US$6.17b in 2025. This would be a reasonable 4.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 2.3% to US$7.64. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$6.24b and earnings per share (EPS) of US$8.22 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$268, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Clean Harbors at US$300 per share, while the most bearish prices it at US$240. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Clean Harbors is an easy business to forecast or the the analysts are all using similar assumptions.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Clean Harbors' revenue growth is expected to slow, with the forecast 4.8% annualised growth rate until the end of 2025 being well below the historical 14% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.7% annually. Factoring in the forecast slowdown in growth, it seems obvious that Clean Harbors is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Clean Harbors. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$268, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Clean Harbors. Long-term earnings power is much more important than next year's profits. We have forecasts for Clean Harbors going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Clean Harbors that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.