Clean Harbors, Inc. (CLH – Free Report) reported dismal fourth-quarter 2016 results with adjusted loss of $3.4 million or 6 cents per share, against earnings of $0.6 million or 1 cent per share in the prior-year quarter. The decline was due to weak industrial and energy market conditions.  Adjusted earnings for the reported quarter comprehensively missed the Zacks Consensus Estimate of 3 cents.

GAAP loss for the reported quarter was $12.7 million or 22 cents per share as against income of $0.6 million or 1 cent per share in the year-earlier quarter. The deterioration was primarily due fall in revenues.

Net revenue was $692.1 million, down 3% from the prior-year period, primarily due to the continued industrial slowdown, softness in energy, and decline in revenues in Western Canada. Revenues also missed the Zacks Consensus Estimate of $697 million. Adjusted Ebitda (earnings before interest, tax, depreciation and amortization) for the reported quarter decreased to $95.9 million from $97.1 million in the year-ago quarter.

For full-year 2016, adjusted earnings declined significantly to $1.3 million or 2 cents per share compared with $74.1 million or $1.27 per share in the prior-year period. Revenues for the year came in at $2,755.2 million compared with $3,275.1 million in the prior year.

Segmental Details

Technical Services accounted for 32.6% of the total revenue. The segment’s revenues in the quarter declined 9.6% from the prior-year quarter to $225.7 million due to the industrial weakness and continued lack of projects, particularly landfills. Adjusted EBITDA declined 4% year over year to $69.6 million.

Industrial and Field Services’ revenues accounted for 21.8% of total revenue in the reported quarter. The segment’s revenues declined to $151.2 million from $163.4 million in the prior-year quarter, due to major emergency response events or large unexpected outages at its customers’ plants. Also customers still remain reluctant to spend on projects. Adjusted EBITDA was $12.6 million compared with $11.8 in the prior-year quarter.

Kleen Performance Products’ revenues increased to $288.9 million from $255.8 million in the prior-year quarter. Revenues were up substantially as the company fully benefited from their strategic move to charge-for-oil versus pay-for-oil, a year ago. However, adjusted EBITDA was up from the year-ago quarter to $54.2 million.

Oil Gas and Lodging Services revenues declined 42.7% to $25.1 million due to slowdown in energy markets, both in the U.S. and Canada. Future price uncertainty has resulted in lower activity levels which are negatively impacting the business’ results. A major part of the segment’s operations are in Canada, and therefore U.S. to Canadian dollar foreign currency translation significantly affects the segment’s results. The company incurred a negative adjusted EBITDA of $3.4 million as against positive adjusted EBITDA of $2.1 million in the year-ago quarter due to lower revenues, margin pressure and the effect of currency translation.

Balance Sheet and Cash Flow

For 2016, the company’s cash and cash equivalents were $307 million compared with $184.7 in 2015. Long-term debt was $1,633.3 million. Clean Harbors repurchased shares worth $22 million, while it still has approximately $100 million remaining under its existing $300 million plan.

Guidance

Clean Harbors provided its guidance for 2017. Adjusted EBITDA is expected to be in the range of $435 million to $475 million. On a GAAP basis, the company expects 2017 net income in the range of $4−$35 million. Adjusted net income for 2017 is expected in the range of $24 −$48 million.

Clean Harbors currently carries a Zacks Rank #2 (Buy).  Some other favorably ranked stocks include Hitachi, Ltd. (HTHIY – Free Report) , CGI Group Inc. (GIB – Free Report) and Barloworld Ltd. (BRRAY – Free Report) . All the stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

Hitachi has a long-term earnings growth expectation of 13% and is currently trading at a forward P/E of 14.3x.

Barloworld has a long-term earnings growth expectation of 18.70% and is currently trading at a forward P/E of 13.54x.

CGI Group has a long-term earnings growth expectation of 8% and is currently trading at a forward P/E of 16.97x.

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