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Mar 31, 2021
Matson Q1 2021 Earnings Report
Matson's first quarter results were announced, showcasing a significant increase in earnings and revenue.
Key Takeaways
Matson reported a strong start to 2021, with significant increases in EPS, net income, and EBITDA compared to the first quarter of 2020. The company's performance was driven by strong demand in its China service and overall solid results in both Ocean Transportation and Logistics segments.
First quarter EPS reached $1.99, a significant increase from $0.09 in the first quarter of 2020.
Net income for the first quarter was $87.2 million, compared to $3.8 million in the same period last year.
EBITDA for the first quarter totaled $160.5 million, a substantial rise from $46.5 million in the first quarter of 2020.
The year-over-year increase in consolidated operating income was primarily driven by the strength of the China service.
Matson
Matson
Matson Revenue by Segment
Revenue by Segment
Ocean Transportation Revenue
CapyFin.com Forward Guidance
Significant supply chain congestion is expected to continue, particularly at California ports, persisting through the second quarter and into the traditional peak season. Demand in the Transpacific tradelane is expected to remain favorable due to elevated consumption trends and e-commerce activity, with significant demand for expedited CLX and CLX+ services anticipated through the peak season into late October.
Positive Outlook
- Continued significant demand for CLX and CLX+ expedited ocean services.
- Elevated volume for e-commerce and other high-demand goods.
- Very strong pre- and post-Lunar New Year volumes.
- Favorable demand in the Transpacific tradelane.
- Elevated consumption trends, including heightened e-commerce activity.
Challenges Ahead
- Significant supply chain congestion, particularly at California ports.
- Conditions expected to persist through the second quarter and into the traditional peak season.
- Negative impact on the Guam economy due to depressed tourism levels in the near-term.
- Alaska economy expected to slowly recover and remain challenged until the pandemic subsides and the unemployment rate improves.
- Lower southbound volume, partially offset by volume from the Alaska-to-Asia Express service.