Matson (NYSE:MATX) Posts Quarterly Earnings Results, Beats Estimates By $0.69 EPS

Matson (NYSE:MATX) released its quarterly earnings data on Wednesday. The shipping company reported $6.96 earnings per share (EPS) for the quarter, topping 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 period in the prior year, the firm posted $4.24 EPS. The business’s quarterly revenue was up 26.5% compared to the same quarter last year.

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 Performance

Shares of MATX traded down $11.43 during midday trading on Wednesday, reaching $210.14. 546,560 shares of the stock were exchanged, compared to its average volume of 275,992. Matson has a twelve month low of $101.44 and a twelve month high of $240.87. The company has a debt-to-equity ratio of 0.11, a current ratio of 0.89 and a quick ratio of 0.89. The company has a market capitalization of $6.28 billion, a price-to-earnings ratio of 14.81 and a beta of 1.33. The business’s 50-day moving average price is $227.55 and its 200 day moving average price is $193.71.

Matson Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 3rd. Stockholders of record on Thursday, November 5th will be given a dividend of $0.38 per share. The ex-dividend date is Thursday, November 5th. This represents a $1.52 dividend on an annualized basis and a dividend yield of 0.7%. Matson’s payout ratio is 10.16%.

Matson News Roundup

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 Transactions at Matson

In other Matson news, SVP Leonard P. Isotoff sold 1,250 shares of Matson stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $208.30, for a total transaction of $260,375.00. Following the transaction, the senior vice president owned 6,527 shares of the company’s stock, valued at $1,359,574.10. The trade was a 16.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP Christopher A. Scott sold 600 shares of the business’s stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $219.90, for a total value of $131,940.00. Following the completion of the sale, the executive vice president owned 9,354 shares of the company’s stock, valued at approximately $2,056,944.60. This represents a 6.03% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 12,462 shares of company stock worth $2,695,832. Insiders own 2.51% of the company’s stock.

Wall Street Analyst Weigh In

MATX has been the subject of several recent analyst reports. Freedom Broker started coverage on Matson in a research note on Wednesday, September 30th. They set a “buy” rating and a $260.00 target price for the company. Wall Street Zen lowered shares of Matson from a “buy” rating to a “hold” rating in a research note on Saturday, August 22nd. Stephens increased their price target 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. raised their price objective on shares of Matson from $270.00 to $310.00 and gave the stock an “overweight” rating in a report on Tuesday, October 13th. Finally, Weiss Ratings upgraded shares of Matson from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. Five analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $249.25.

Matson Company Profile

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.