Q3 Earnings Highlights: Pangaea (NASDAQ:PANL) Vs The Rest Of The Marine Transportation Stocks

December 06, 2024 at 03:12 AM EST

PANL Cover Image

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at marine transportation stocks, starting with Pangaea (NASDAQ: PANL).

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 slower Q3. As a group, revenues missed analysts’ consensus estimates by 0.7%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 5.5% since the latest earnings results.

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 $153.1 million, up 12.9% year on year. This print exceeded analysts’ expectations by 8.3%. Despite the top-line beat, it was still a mixed quarter for the company.

"Strategically, this has been a historic year for Pangaea, one in which we've continued to advance our value creation strategy through a combination of targeted fleet expansion, strong operational execution, and accretive inorganic growth," stated Mark Filanowski, Chief Executive Officer of Pangaea Logistics Solutions.

Pangaea pulled off the biggest analyst estimates beat of the whole group. Still, the market seems discontent with the results. The stock is down 2.3% since reporting and currently trades at $5.84.

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

Best Q3: Kirby (NYSE: KEX)

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

Kirby reported revenues of $831.1 million, up 8.7% year on year, outperforming analysts’ expectations by 0.9%. The business had a strong quarter with a solid beat of analysts’ Distribution and Services revenue estimates and a decent beat of analysts’ EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 2.3% since reporting. It currently trades at $120.12.

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

Weakest Q3: 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 $258.2 million, down 10.7% year on year, falling short of analysts’ expectations by 8.7%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

Scorpio Tankers delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 18% since the results and currently trades at $49.99.

Read our full analysis of Scorpio Tankers’s results here.

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 $70.75 million, up 46.2% year on year. This number missed analysts’ expectations by 3.9%. Zooming out, it was a mixed quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates.

Genco delivered the fastest revenue growth among its peers. The stock is down 7.3% since reporting and currently trades at $15.57.

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

Matson (NYSE: MATX)

Founded by a Swedish orphan, Matson (NYSE: MATX) is a provider of ocean transportation and logistics services.

Matson reported revenues of $962 million, up 16.3% year on year. This print was in line with analysts’ expectations. It was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates.

The stock is up 14.1% since reporting and currently trades at $152.39.

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

Market Update

As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the US Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain. Said differently, there's still much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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