NYSE$MATX

Matson Inc. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Matson's financial performance improved in the second quarter of 2024, with increased operating income in both Ocean Transportation and Logistics segments, driven by higher freight rates in the China service and strength in supply chain management.

Matson reported net income of $113.2 million, or $3.31 per diluted share, for the second quarter of 2024, compared to $80.8 million, or $2.26 per diluted share, for the same period in 2023. Consolidated revenue for the quarter was $847.4 million, up from $773.4 million in the second quarter of 2023. The increase was primarily driven by higher freight rates in the China service and increased volumes in Alaska.

  • Second quarter EPS was $3.31, compared to $2.26 in the second quarter of 2023.
  • Net income for the second quarter was $113.2 million, versus $80.8 million in the second quarter of 2023.
  • Consolidated operating income for the second quarter was $124.6 million, compared to $96.7 million in the second quarter of 2023.
  • The company repurchased approximately 0.6 million shares during the second quarter.

Headline financials

Total Revenue

$847M

Previous: $773M+9.6%
EPS

$3.31

Previous: $2.26+46.5%
Hawaii Container Volume

35.1K

Previous: 36.4K-3.6%
Alaska Container Volume

21.5K

Previous: 20.5K+4.9%
China Container Volume

37.8K

Previous: 36.7K+3.0%
Guam Container Volume

4.6K

Previous: 4.9K-6.1%
Other Container Volume

4.4K

No prior period
SSAT Income

$1.2M

No prior period
EBITDA

$172M

No prior period
Capital Expenditures

-$38.2M

Previous: -$50.8M+24.8%
Free Cash Flow

$75M

Previous: $30M+150.0%
Net Income

$113M

Previous: $80.8M+40.1%
Operating Income

$125M

Previous: $96.7M+28.9%
Gross Profit

$201M

Previous: $169M+18.9%
Cash & Equivalents

$168M

Previous: $122M+37.9%
Total Assets

$4.27B

Previous: $4.22B+1.3%
Stock-Based Comp

$6.3M

Previous: $5.2M+21.2%

Revenue & EPS history

Matson · Revenue · Quarterly

$847M

Q2 2024+9.6%vs Q2 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Matson · $669M total across 1 segment · Q3 2023

  • Ocean Transportation
    $669M-27.1%

Forward guidance

Matson expects elevated freight rates in its China service during the traditional peak season in the third and early fourth quarters. The company anticipates domestic tradelane volumes to approach 2023 levels. Third quarter Ocean Transportation operating income is expected to be meaningfully higher than the $118.2 million achieved last year, and fourth quarter operating income is expected to be moderately higher than the $66.4 million achieved in the fourth quarter 2023. Logistics operating income in both the third and fourth quarters of 2024 is expected to approximate the levels achieved last year.

Tailwinds

  • China service to continue to see elevated freight rates during the traditional peak season in the third and early fourth quarters.
  • Domestic tradelane volumes are expected to approach the levels achieved in 2023.
  • Third quarter 2024 operating income for Ocean Transportation is expected to be meaningfully higher than the $118.2 million achieved last year.
  • Fourth quarter 2024 operating income for Ocean Transportation is expected to be moderately higher than the $66.4 million achieved in the fourth quarter 2023.
  • Logistics operating income in both the third and fourth quarters of 2024 to approximate the levels achieved last year.

Headwinds

  • Freight rate trajectory after the peak season is uncertain.
  • Volumes in 2024 expected to be modestly lower than 2023 in Hawaii service.
  • Continued challenges in population growth and lower discretionary income as a result of higher inflation and interest rates may impact performance.
  • Guam volume is expected to approach the level achieved last year.
  • Alaska volume to approximate the level achieved last year.

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 Q2 2024

Historical avgQ2 2024

-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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