NYSE$MATX

Matson Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Matson's financial performance declined due to lower contribution from China service and decreased volumes in domestic ocean tradelanes.

Matson reported a decrease in net income and EPS for Q1 2023 compared to Q1 2022, primarily due to lower volumes and freight rates in the China service and decreased volumes in Hawaii, Alaska, and Guam. The Logistics segment also experienced a decrease in operating income. However, the company expects improved trade dynamics in the second half of 2023 and anticipates Q2 operating income to be higher than Q1.

  • Q1 2023 EPS was $0.94, a decrease from $8.23 in Q1 2022.
  • Net income for Q1 2023 was $34.0 million, compared to $339.2 million in Q1 2022.
  • Consolidated revenue for Q1 2023 was $704.8 million, down from $1,165.5 million in Q1 2022.
  • The company repurchased approximately 0.7 million shares in Q1 2023.

Headline financials

Total Revenue

$705M

Previous: $1.17B-39.5%
EPS (adj)

$0.94

Previous: $8.23-88.6%
Hawaii Container Volume

35.2K

Previous: 35.5K-0.8%
Alaska Container Volume

19.8K

Previous: 20.8K-4.8%
China Container Volume

30.1K

Previous: 46.6K-35.4%
Guam Container Volume

4.9K

Previous: 5.5K-10.9%
Capital Expenditures

-$400K

Previous: -$9.4M+95.7%
Free Cash Flow

$33.6M

Previous: $330M-89.8%
Net Income

$34M

Previous: $339M-90.0%
Operating Income

$38.7M

Previous: $433M-91.1%
Gross Profit

$107M

Previous: $462M-76.8%
Cash & Equivalents

$88.5M

Previous: $393M-77.5%
Total Assets

$4.23B

Previous: $3.98B+6.3%
Stock-Based Comp

$4.6M

Previous: $4.7M-2.1%

Revenue & EPS history

Matson · Revenue · Quarterly

$705M

Q1 2023-39.5%vs Q1 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Matson · $705M total across 2 segments · Q1 2023

  • Ocean Transportation
    $551M-41.6%
  • Logistics
    $154M-30.6%

Forward guidance

Matson expects consolidated operating income in the second quarter of 2023 to be higher than the first quarter.

Tailwinds

  • Normal seasonality to return to domestic tradelanes
  • Normal seasonality to return to Logistics
  • Continued economic growth in Alaska to be supportive of improved freight demand
  • Additional three million shares approved for share repurchase program
  • Committed to the return of excess capital to shareholders

Headwinds

  • China service to experience freight demand levels below normalized conditions
  • Muted freight demand in Hawaii
  • Muted freight demand in Guam
  • Higher inflation creates uncertainty in the economic growth trajectory
  • Higher interest rates create uncertainty in the economic growth trajectory

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.7%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.0%

Avg return

30 days after

49%

34 / 69 earnings

Positive

+15.2%

Q3 2024

Best reaction

-15.3%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+9.7%+7.0%+9.2%
Q4 2025+1.0%+2.5%-5.4%
Q3 2025-1.4%-0.4%+10.7%
Q1 2025-15.3%-12.6%+1.8%
Q4 2024+1.7%-0.9%-10.1%
Q3 2024+15.2%+15.9%+14.0%
Q2 2024-0.9%-2.4%+4.2%
Q1 2024-4.1%+3.1%+12.5%
Q4 2023-2.4%-0.6%-7.4%
Q3 2023-2.3%-0.5%+5.6%
Q2 2023+1.1%+2.5%-6.0%
Q1 2023+4.9%+1.8%+12.8%
Q4 2022-7.8%-3.4%-15.3%
Q3 2022-10.0%-4.8%-13.9%
Q2 2022-9.1%-9.5%-19.6%
Q1 2022+6.3%+2.0%+3.1%
Q4 2021+9.7%+15.5%+35.9%
Q3 2021+8.5%+9.4%-2.4%
Q2 2021+3.7%+8.7%+21.8%
Q1 2021-1.6%-3.5%-5.9%
Q4 2020-4.4%-8.7%-11.5%
Q3 2020+10.8%+7.0%+11.6%
Q2 2020+6.4%+10.5%+11.7%
Q1 2020-7.1%-3.2%+9.5%
Q4 2019-12.0%-10.5%-12.8%
Q3 2019-2.1%-0.6%-4.5%
Q2 2019-3.1%-4.0%+1.3%
Q1 2019+0.7%-1.3%-6.8%
Q4 2018-2.8%+3.1%-1.4%
Q3 2018+14.3%+12.7%+5.2%
Q2 2018+2.5%+1.7%+5.9%
Q1 2018+5.9%+6.8%+17.1%
Q4 2017-14.6%-14.9%-16.8%
Q3 2017+6.8%+5.4%+7.7%
Q2 2017+3.1%+6.6%-11.0%
Q1 2017+4.2%+1.2%-4.1%
Q4 2016-8.6%-7.3%-14.6%
Q3 2016-12.3%-8.3%-2.4%
Q2 2016-4.7%-3.5%+9.3%
Q1 2016-12.7%
Q4 2015-5.8%
Q3 2015+9.2%
Q2 2015+6.0%
Q1 2015+3.1%
Q4 2014+7.6%
Q3 2014+4.3%
Q2 2014-2.7%
Q1 2014-6.1%
Q4 2013-3.7%
Q3 2013-13.6%
Q2 2013+0.0%
Q1 2013+7.6%
Q4 2012-0.5%
Q3 2012+3.7%
Q2 2012+3.7%
Q1 2012-1.1%
Q4 2011+2.8%
Q1 2009-8.2%
Q4 2008-8.2%
Q3 2011-8.8%
Q2 2011-7.1%
Q1 2010-8.1%
Q1 2011-8.1%
Q4 2010+1.8%
Q3 2009+0.4%
Q3 2010+0.4%
Q4 2009+1.3%
Q2 2009+1.3%
Q2 2010+1.3%

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