Matson (NYSE:MATX) Releases Earnings Results, Beats Expectations By $0.69 EPS

Matson (NYSE:MATX) announced its earnings results on Wednesday. The shipping company reported $6.96 earnings per share for the quarter, beating the consensus estimate of $6.27 by $0.69, FiscalAI reports. Matson had a return on equity of 16.94% and a net margin of 13.41%. The business had revenue of $1.11 billion during the quarter, compared to analysts’ expectations of $1.07 billion. During the same quarter last year, the business posted $4.24 earnings per share. The company’s quarterly revenue was up 26.5% on a year-over-year basis.

Here are the key takeaways from Matson’s conference call:

• Matson reported a strong third quarter: operating income rose $94.2 million year over year to $255.2 million, while net income increased 55.5% to $209.4 million. The China service was the main driver, benefiting from higher volume, strong demand and elevated freight rates.
• Management expects China demand and elevated rates to persist through year-end and into early 2027, with ships full or nearly full in the fourth quarter. It forecasts fourth-quarter consolidated operating income about 50% above the year-ago level, though the comparison in net income will be affected by a higher expected tax rate of about 20% versus 5.2% last year.
• Performance across other businesses and trade lanes was mixed: Hawaiʻi and Alaska volumes declined, and SSAT’s contribution fell to $7.4 million, with a lower full-year contribution expected. Guam volumes rose, while logistics operating income increased to $16.1 million, partly offset by weaker warehousing.
• Cash flow from operations was $637.5 million over the trailing 12 months, and Matson returned $302.2 million through dividends and buybacks. The company said its cash and Capital Construction Fund balances together exceed remaining vessel milestone payments, supporting its funding position.
• Matson lowered its estimate of annual incremental capacity from its three new Aloha-class vessels to about 12,000 containers, from an earlier estimate of 15,000, due to changes in the China-service fleet configuration. The second vessel is expected to enter service after the 2027 peak season.

Matson Stock Down 5.2%

NYSE:MATX traded down $11.43 during mid-day trading on Wednesday, reaching $210.14. The stock had a trading volume of 546,560 shares, compared to its average volume of 275,992. The business’s 50 day moving average is $227.55 and its 200 day moving average is $193.71. Matson has a fifty-two week low of $101.44 and a fifty-two week high of $240.87. The stock has a market cap of $6.28 billion, a P/E ratio of 14.81 and a beta of 1.33. The company has a debt-to-equity ratio of 0.11, a current ratio of 0.89 and a quick ratio of 0.89.

Matson Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 3rd. Investors of record on Thursday, November 5th will be paid a $0.38 dividend. The ex-dividend date of this dividend is Thursday, November 5th. This represents a $1.52 annualized dividend and a dividend yield of 0.7%. Matson’s payout ratio is presently 10.16%.

Analyst Ratings Changes

MATX has been the topic of several recent analyst reports. Weiss Ratings raised Matson from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. Stephens upped their price objective on shares of Matson from $240.00 to $260.00 and gave the company an “overweight” rating in a research note on Tuesday, August 4th. JPMorgan Chase & Co. lifted their target price on shares of Matson from $270.00 to $310.00 and gave the company an “overweight” rating in a research note on Tuesday, October 13th. Wall Street Zen lowered shares of Matson from a “buy” rating to a “hold” rating in a research note on Saturday, August 22nd. Finally, Zacks Research cut shares of Matson from a “strong-buy” rating to a “hold” rating in a report on Monday, October 5th. Five equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $249.25.

Matson News Summary

Here are the key news stories impacting Matson this week:

• Positive Sentiment: Q3 diluted EPS was $6.96, up from $4.24 a year earlier and above estimates of $6.27 (and the Zacks consensus of $6.09). Revenue rose 26.5% year over year to $1.11 billion, also exceeding forecasts. Read More.
• Positive Sentiment: Net income increased to $209.4 million from $134.7 million, while EBITDA rose to $310.6 million from $212.3 million. Matson also raised its full-year outlook and repurchased about 0.3 million shares during the quarter. Read More.
• Neutral Sentiment: Despite the earnings beat and improved outlook, MATX is trading lower. The available reports do not point to a specific negative company development behind the move, so profit-taking or expectations already reflected in the share price are possible but unconfirmed explanations.

Insider Activity

In other Matson news, SVP John Sullivan sold 1,917 shares of Matson stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $208.49, for a total value of $399,675.33. Following the completion of the sale, the senior vice president directly owned 7,630 shares in the company, valued at $1,590,778.70. The trade was a 20.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Vic Angoco, Jr. sold 2,293 shares of Matson stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $222.76, for a total transaction of $510,788.68. Following the completion of the sale, the executive vice president owned 12,507 shares of the company’s stock, valued at $2,786,059.32. This trade represents a 15.49% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 12,462 shares of company stock valued at $2,695,832. 2.51% of the stock is currently owned by company insiders.

About Matson

Matson, Inc is a transportation and logistics company that provides ocean shipping and supply chain services. Through its Matson Navigation subsidiary, the company transports containerized and bulk cargo, automobiles and other goods between the U.S. mainland and Hawaii, Alaska, Guam, Micronesia and selected South Pacific destinations. Matson also operates services linking the U.S. West Coast with China, Japan and South Korea.

The company serves a broad range of customers, including retailers, manufacturers, wholesalers, government agencies and individual consumers.