May 4, 2011 / 2:53 PM / 7 years ago

UPDATE 2-Clean Harbors Q1 beats Street, raises 2011 rev view

* Q1 EPS $0.86 vs est $0.65

* Ups FY 2011 rev view to $1.62-$1.67 bln from $1.54-$1.59 bln

* Says Co to benefit from investments driven by high oil prices

* Shares up as much as 9 pct (Follows alerts)

May 4 (Reuters) - Waste-management services provider Clean Harbors Inc posted first-quarter results well above analysts’ estimates on revenue growth, and raised its 2011 revenue forecast, driving up its shares.

The company now expects full-year revenue of $1.62-$1.67 billion, up from its previous forecast of $1.54-$1.59 billion.

Analysts, on an average, were expecting revenue of $1.60 billion, according to Thomson Reuters I/B/E/S.

The company expects its environmental and industrial businesses to grow at 6-9 percent and 15-17 percent, respectively, but said the forecasts were conservative.

Demand for waste management services is expanding as an improving economy leaves refiners with disposable funds for treating their waste.

High oil prices kept driving investments in the oil sands and other parts of western Canada and Marcella Shale, which will benefit Clean Harbors from initial production and long-term maintenance perspective, the company’s Chief Financial Officer Jim Rutledge said on a conference call.

“We remain encouraged about our prospects for profitable growth. The underlying economic and outsourcing trends remain favorable,” Chief Executive Alan McKim said.

Rutledge said Clear Harbor expects projects to come through the pipeline more like they used to before the recession.

January-March net income was $22.7 million, or 86 cents a share, against $10.4 million, or 40 cents a share, a year ago.

Revenue rose 23 percent to $435 million.

Analysts expected earnings of 65 cents a share on revenue of $385.5 million.

With the acquisition of Peak Energy Services, Clean Harbors is also looking to expand its presence in oil and gas drilling and production support, McKim added.

The Norwell, Massachusetts company’s shares were trading up more than 3 percent at $100.35 on Wednesday on the New York Stock Exchange after earlier soaring up to $106.30, near its year-high. (Reporting by Mayuresh Tungare in Bangalore; Editing by Roshni Menon and Joyjeet Das)

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