Q2 Rundown: Matson (NYSE:MATX) Vs Other Marine Transportation Stocks

MATX Cover Image — Q2 Rundown: Matson (NYSE:MATX) Vs Other Marine Transportation Stocks

Adam Hejl

Thu, Oct 3, 2024, 2:22 AM 4 min read

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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.7%.

Inflation progressed towards the Fed's 2% goal recently, leading the Fed to reduce its policy rate by 50bps (half a percent or 0.5%) in September 2024. This is the first cut in four years. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be debating whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.

In light of this news, marine transportation stocks have held steady with share prices up 4.9% on average 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 $847.4 million, up 9.6% year on year. This print exceeded analysts’ expectations by 3.7%. Overall, it was an exceptional quarter for the company with a decent beat of analysts’ earnings estimates.

"Matson performed well in the second quarter with higher year-over-year operating income in both Ocean Transportation and Logistics business segments," said Chairman and Chief Executive Officer Matt Cox.

Interestingly, the stock is up 8.9% since reporting and currently trades at $139.90.

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

Best Q2: Pangaea (NASDAQ:PANL)

Established in 1996, Pangaea Logistics (NASDAQ:PANL) specializes in global logistics and transportation services, focusing on the shipment of dry bulk cargoes.

Pangaea reported revenues of $131.5 million, up 11.4% year on year, outperforming analysts’ expectations by 17%. The business had an incredible quarter with an impressive beat of analysts’ earnings estimates.

Pangaea scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 10.1% since reporting. It currently trades at $7.20.

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

Weakest Q2: Genco (NYSE:GNK)

Headquartered in NYC, Genco (NYSE:GNK) is a shipping company that transports dry bulk cargo along worldwide maritime routes.

Genco reported revenues of $76.3 million, up 25.2% year on year, exceeding analysts’ expectations by 2.1%. Still, it was a slower quarter as it posted a miss of analysts’ earnings estimates.

Interestingly, the stock is up 7.3% since the results and currently trades at $19.15.

Read our full analysis of Genco’s results here.

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.

Scorpio Tankers reported revenues of $373.5 million, up 14% year on year. This number met analysts’ expectations. Taking a step back, it was a mixed quarter as it also recorded a narrow beat of analysts’ earnings estimates but a miss of analysts’ operating margin estimates.

The stock is down 1.7% since reporting and currently trades at $73.26.

Read our full, actionable report on Scorpio Tankers here, it’s free.

Kirby (NYSE:KEX)

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

Kirby reported revenues of $824.4 million, up 6.1% year on year. This number met analysts’ expectations. It was a strong quarter as it also recorded an impressive beat of analysts’ operating margin estimates and a decent beat of analysts’ earnings estimates.

Kirby had the weakest performance against analyst estimates and slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $122.67.

Read our full, actionable report on Kirby here, it’s free.

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