• Operating Income: Increased by $27.9 million year-over-year to $124.6 million.

• Ocean Transportation Operating Income: Increased by $26.6 million, driven by higher freight rates in China.

• Logistics Operating Income: Increased by $1.3 million, primarily due to supply chain management.

• Interest Income: $18.8 million, including $10.2 million from a federal income tax refund.

• Interest Expense: Decreased by $0.8 million year-over-year.

• Income Increase: 40.1% year-over-year.

• Diluted Earnings Per Share: Increased by 46.5% year-over-year.

• Cash Flow from Operations: Approximately $608.5 million over the trailing 12 months.

• Share Repurchase: $0.6 million shares repurchased in Q2 for $72.2 million; $1 million shares year-to-date for $121.1 million.

• Total Debt: $420.7 million, reduced by $9.8 million from the previous quarter.

• Federal Tax Refund: Received $118.6 million related to the 2021 tax return.

• Depreciation and Amortization Outlook: Approximately $180 million for the full year.

• Interest Income Outlook: Approximately $45 million for the full year.

• Interest Expense Outlook: Approximately $8 million for the full year.

• Effective Tax Rate: Approximately 22.0% for the full year.

• CapEx Projection for 2024: Increased by $15 million for LNG installations, totaling $85 million to $95 million.

• Warning! GuruFocus has detected 7 Warning Signs with FOXF.

Release Date: August 01, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Matson Inc (NYSE:MATX) reported higher year-over-year operating income in its Ocean Transportation segment, driven by significantly higher freight rates in its China service.

• The company experienced increased container volumes in Alaska due to two additional sailings, indicating strong demand in that region.

• Matson Inc (NYSE:MATX) raised its outlook for 2024, expecting continued strength in its China service in the latter half of the year.

• The Logistics segment saw an increase in operating income, primarily due to higher contributions from supply chain management.

• Matson Inc (NYSE:MATX) returned approximately $237.5 million to shareholders through dividends and share repurchases, demonstrating a commitment to shareholder value.

Negative Points

• Container volume in Hawaii decreased by 3.6% year-over-year, primarily due to lower general demand and reduced tourist arrivals.

• Guam experienced a 6.1% year-over-year decrease in container volume due to one less sailing compared to the previous year.

• The SSAT joint venture's contribution was lower than expected due to weaker volume across its terminals, particularly in the Pacific Northwest.

• Higher vessel operating costs, including fuel-related expenses, partially offset the increase in Ocean Transportation operating income.

• The company faces uncertainties in freight rate trajectories post-peak season due to factors like the US economy, interest rates, and geopolitical conditions.