Spotting Winners: Matson (NYSE:MATX) And Marine Transportation Stocks In Q3

January 01, 2025 at 04:03 AM EST

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Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Matson (NYSE: MATX) and its peers.

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 13.2% 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 $962 million, up 16.3% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $134.84.

Is now the time to buy Matson? Access our full analysis of the earnings results 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 12.5% since reporting. It currently trades at $107.48.

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 18.8% since the results and currently trades at $49.50.

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

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 result beat analysts’ expectations by 8.3%. Zooming out, it was a mixed quarter as it recorded a significant miss of analysts’ EPS estimates.

Pangaea delivered the biggest analyst estimates beat among its peers. The stock is down 18.9% since reporting and currently trades at $5.50.

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

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 print missed analysts’ expectations by 3.9%. Zooming out, it was a mixed quarter as it recorded EBITDA in line with analysts’ estimates.

Genco pulled off the fastest revenue growth among its peers. The stock is down 17% since reporting and currently trades at $13.94.

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

Market Update

Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.

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

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