Spotting Winners: Matson (NYSE:MATX) And Marine Transportation Stocks In Q3

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MATX Cover Image
Spotting Winners: Matson (NYSE:MATX) And Marine Transportation Stocks In Q3

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Matson (NYSE:MATX) and its peers.

The growth of e-commerce and global trade continues to drive demand for shipping services, presenting opportunities for marine transportation companies. While ocean freight is more fuel efficient and therefore cheaper than its air and ground counterparts, it results in slower delivery times, presenting a trade off. To improve transit speeds, the industry continues to invest in digitization to optimize fleets and routes. However, marine transportation companies are still at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies’ offerings while fuel costs can influence profit margins. Geopolitical tensions can also affect access to trade routes, and if certain countries are banned from using passageways like the Panama Canal, costs can spiral out of control.

The 5 marine transportation stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 0.7%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 13.2% since the latest earnings results.

Matson (NYSE:MATX)

Founded by a Swedish orphan, Matson (NYSE:MATX) is a provider of ocean transportation and logistics services.

Matson reported revenues of $962 million, up 16.3% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates.

Matson Total Revenue
Matson Total Revenue

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $134.84.

Is now the time to buy Matson? Access our full analysis of the earnings results here, it’s free.

Best Q3: Kirby (NYSE:KEX)

Transporting goods along all U.S. coasts, Kirby (NYSE:KEX) provides inland and coastal marine transportation services.

Kirby reported revenues of $831.1 million, up 8.7% year on year, outperforming analysts’ expectations by 0.9%. The business had a strong quarter with a solid beat of analysts’ Distribution and Services revenue estimates and a decent beat of analysts’ EBITDA estimates.

Kirby Total Revenue
Kirby Total Revenue

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 12.5% since reporting. It currently trades at $107.48.

Is now the time to buy Kirby? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Scorpio Tankers (NYSE:STNG)

Operating one of the youngest fleets in the industry, Scorpio Tankers (NYSE: STNG) is an international provider of marine transportation services, specializing in the shipment of refined petroleum.


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