Matson's first quarter results were overshadowed by a sharper-than-expected decline in its China volumes following the implementation of new tariffs, which contributed to a negative market reaction. Management pointed to elevated freight rates early in the quarter as a temporary boost, but emphasized that demand weakened significantly in April. CEO Matt Cox described the operating environment as “unsettled and rapidly evolving,” with particular challenges stemming from shifting global trade dynamics. The company also noted lower contributions from its logistics segment, largely due to weaker freight forwarding and transportation brokerage activity.

Is now the time to buy MATX? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions Matson’s Q1 Earnings Call

• Daniel Imbro (Stephens) asked about Matson’s capacity in Vietnam and the ability to scale services there. CEO Matt Cox explained they can increase volume through partnerships with feeder operators and that Ho Chi Minh now accounts for roughly 20% of current volumes, but warned Vietnam faces infrastructure and labor constraints.
• Imbro (Stephens) followed up on whether the 30% China volume drop included gains from Vietnam. Cox clarified that initial declines were broad across origins but recent weeks saw Vietnam volumes recover due to the new service.
• Imbro (Stephens) inquired about freight rate dynamics post-tariffs. Cox said the market is in flux, with some carriers blanking sailings and others adjusting rates, while Matson expects its own rates and volumes to move in line with market direction.
• Jacob Lacks (Wolfe Research) questioned if Matson would cancel sailings given the volume drop. Cox responded that Matson aims to avoid blank sailings to maintain its brand reputation, but will reassess if conditions persist.
• Ben Nolan (Stifel) asked about cost mitigation measures. CFO Joel Wine detailed a headcount freeze and deferred capex, emphasizing the company’s intent to retain operational flexibility for a potential market rebound.

Catalysts in Upcoming Quarters

In the coming quarters, our analyst team will watch (1) the trajectory of China-origin container volumes as tariffs and trade negotiations evolve, (2) Matson’s ability to grow and monetize its expanded Vietnam and Southeast Asia services, and (3) the effectiveness of cost containment initiatives in preserving margins. Successful adaptation to shifting trade patterns and supply chain resilience will be critical to performance.

Matson currently trades at $110.93, in line with $110.07 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

Our Favorite Stocks Right Now

The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.

While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.