NYSE$MATX

Matson Inc. · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Matson's fourth quarter earnings decreased compared to the same period last year, but China tradelane service outperformed and Hawaii service saw a modest rebound.

Matson reported a decrease in net income for Q4 2019, with EPS at $0.36 compared to $0.48 in Q4 2018. Consolidated revenue also decreased to $540.7 million from $564.9 million in the same quarter of the previous year. The results were below expectations despite solid contributions from China and Alaska tradelanes, and Logistics.

  • Q4 2019 EPS was $0.36.
  • Full Year 2019 EPS was $1.91.
  • Full Year 2019 Net Income and EBITDA were $82.7 million and $264.3 million, respectively.
  • 2020 Net Income is expected to be flat with the 2019 level, with an expected negative impact from COVID-19.

Headline financials

Total Revenue

$541M

Previous: $565M-4.3%
EPS (adj)

$0.36

Previous: $0.48-25.0%
Hawaii Container Volume

37.3K

Previous: 36.9K+1.1%
Alaska Container Volume

14.8K

Previous: 14.9K-0.7%
China Container Volume

16.9K

Previous: 16.2K+4.3%
Guam Container Volume

4.8K

Previous: 5.2K-7.7%
Net Income

$15.6M

Previous: $20.6M-24.3%
Operating Income

$25.4M

Previous: $30.5M-16.7%
Gross Profit

$75.2M

Previous: $80.6M-6.7%
Cash & Equivalents

$21.2M

Previous: $19.6M+8.2%
Total Assets

$2.85B

Previous: $2.43B+17.1%
Stock-Based Comp

$2.6M

Previous: $3.9M-33.3%

Revenue & EPS history

Matson · Revenue · Quarterly

$541M

Q4 2019-4.3%vs Q4 2018
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Matson · $416M total across 1 segment · Q4 2019

  • Ocean Transportation
    $416M

Forward guidance

The Company expects net income in 2020 to be flat year-over-year and expects consolidated operating income and EBITDA in 2020 to be approximately $143 million and $280 million, respectively, including approximately $15 million negative impact from COVID-19.

Tailwinds

  • Improved consolidated financial performance led by the reduction in fleet deployment to nine vessels in our Hawaii tradelane service.
  • Financial benefits from our other infrastructure-related investments.
  • Expect net income to be flat and EBITDA to be higher than the levels achieved in 2019.
  • Specifically, we expect EBITDA in 2020 to be approximately $280 million.
  • Reaffirm $30 million in financial benefits in 2020 from new vessels and infrastructure investments

Headwinds

  • Negative financial impact from COVID-19 on our CLX service, at SSAT and in Logistics of approximately $15 million in aggregate.
  • Expect challenging conditions in the first half of the year as a result of COVID-19.
  • Expect volume in 2020 to be modestly lower than the prior year and average freight rates in 2020 to approximate the levels achieved in 2019 for China.
  • The Company expects the contribution from SSAT to be lower due to lower lift volume primarily driven by the negative effects of COVID-19.
  • The Company expects Logistics operating income to be lower than the level achieved in 2019 of $38.3 million.

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 Q4 2019

Historical avgQ4 2019

-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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