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

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Matson (MATX - Free Report) is scheduled to report second-quarter 2024 results on Aug 1, after market close.

MATX boasts an impressive surprise history, with its earnings having surpassed the Zacks Consensus Estimate in three of the preceding four quarters (in-line earnings in the remaining quarter), the average beat being 2%.

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 MATX’s second-quarter earnings has been revised 23% upward in the past 60 days to $3.05 per share. Additionally, the consensus mark implies a 35% increase from the year-ago actuals. The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $861.7 million, suggesting an 11.4% uptick from the year-ago actuals.

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

We expect Matson’s second-quarter performance to have been driven by the normalization of economic activities in the United States. The buoyant demand scenario for MATX's services is likely to have aided its top line.

The Zacks Consensus Estimate for second-quarter 2024 Ocean Transportation revenues is currently pegged at $706.8 million, indicating an increase of 22.1% from the figure reported in first-quarter 2024. Higher freight rates in China and the domestic tradelanes are expected to have aided revenues.

The Zacks Consensus Estimate for second-quarter logistics revenues is currently pegged at $154.9 million, indicating an increase of 8% from the figure reported in first-quarter 2024. Factors like increased goods consumption and inventory restocking are likely to have driven segmental results for the quarter to be reported.

Increasing total expenses due to escalating vessel operating costs are likely to have dented the bottom line in this earning season.

What Does the Zacks Model Say?

Our proven model does not conclusively predict an earnings beat for Matson 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 $3.05. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Matson currently sports a Zacks Rank #1.

Highlights of Q1 Earnings

Matson's first-quarter earnings of $1.04 per share surpassed the Zacks Consensus Estimate of 99 cents. Total revenues of $722.1 million missed the Zacks Consensus Estimate by 2.4%.

Stocks to Consider

Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this season.

Copa Holdings (CPA - Free Report) has an Earnings ESP of +1.62% and carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

CPA will release results on Aug 7. Upbeat air-travel demand is likely to have aided the second-quarter performance.

The Zacks Consensus Estimate for CPA’s second-quarter 2024 earnings has been revised downward by 18.9% in the past 60 days to $2.87 per share. CPA has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 20.2%.

Expeditors International of Washington (EXPD - Free Report) currently has an Earnings ESP of +2.22% and a Zacks Rank #2. EXPD is scheduled to report second-quarter 2024 earnings on Aug 6. Lacklustre volumes (with respect to air-freight tonnage and ocean containers) due to weakening demand and falling rates are likely to have hurt EXPD’s performance in the to-be-reported quarter.

The Zacks Consensus Estimate for second-quarter earnings has been revised 3.3% upward in the last 60 days. EXPD surpassed the Zacks Consensus Estimate for earnings in only one of the preceding four quarters and missed thrice, the average negative earnings surprise being 3.4%.

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