Back to top

Image: Bigstock

Matson (MATX) to Report Q2 Earnings: What's in the Offing?

Read MoreHide Full Article

Matson (MATX - Free Report) is scheduled to report second-quarter 2021 results on Jul 29.

The company boasts a stellar surprise history with its earnings having surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 5.1%.

Matson, Inc. Price and EPS Surprise

Matson, Inc. Price and EPS Surprise

Matson, Inc. price-eps-surprise | Matson, Inc. Quote

The Zacks Consensus Estimate for second-quarter 2021 earnings has been revised 80.8% upward over the past 60 days.

Against this backdrop, let’s discuss the factors that might have impacted Matson’s performance in the June quarter.

We expect the company’s second-quarter performance to have been driven by the gradual uptick in economic activities in the United States, courtesy of the easing of restrictions. The widespread vaccination is also likely to boost the to-be-reported results by buoying demand for the company's services. This, in turn, might have perked up revenues on a year-over-year basis.

The Zacks Consensus Estimate for second-quarter 2021 logistics revenues is currently pegged at $164 million, indicating an increase of 8.6% from the figure reported in first-quarter 2021. The same hints at a rise of 32.2% from the year-ago quarter’s actuals. Higher transportation brokerage revenues are likely to contribute to segmental results in the quarter to be reported.

The Zacks Consensus Estimate for second-quarter Ocean Transportation revenues is currently pegged at $692 million, implying a rise of 23.3%. from the sequential quarter’s reported number. The same hints at an increase of 68.4% from the year-ago quarter’s actuals. Better freight revenues in the China service are likely to have inflated segmental revenues.

Elevated total expenses due to escalated operating costs are likely to have dented the bottom line in the quarter to be reported.

What Does the Zacks Model Say?

Our proven model does not conclusively predict an earnings beat for Norfolk Southern this time around. The combination of a positive  Earnings ESP  and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here as elaborated below. You can see  the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Matson has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate of $3.67. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Matson currently carries a Zacks Rank #2.

Highlights of Q1 Earnings

Matson's first-quarter earnings of $1.99 per share surpassed the Zacks Consensus Estimate of $1.86. Total revenues of $711.8 million surpassed the Zacks Consensus Estimate of $686.8 million, aided by an impressive performance of both its segments.

Stocks to Consider

Investors interested in the broader Transportation sector may consider Hawaiian Holdings, Inc. , Canadian Pacific Railway Limited (CP - Free Report) and Allegiant Travel Company (ALGT - Free Report) , which possess the right combination of elements to beat on earnings this reporting cycle.

Hawaiian Holdings has an Earnings ESP of +2.93% and is Zacks #3 Ranked, presently. The company will release second-quarter 2021 results on Jul 27.

Canadian Pacific has an Earnings ESP of +0.71% and a Zacks Rank #3 at present. The company will release second-quarter 2021 results on Jul 28.

Allegiant has an Earnings ESP of +12.39% and is currently a #3 Ranked player. The company will release second-quarter 2021 results on Jul 28.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Canadian Pacific Kansas City Limited (CP) - free report >>

Allegiant Travel Company (ALGT) - free report >>

Matson, Inc. (MATX) - free report >>

Published in