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Mar 31, 2023
Matson Q1 2023 Earnings Report
Matson's financial performance declined due to lower contribution from China service and decreased volumes in domestic ocean tradelanes.
Key Takeaways
Matson reported a decrease in net income and EPS for Q1 2023 compared to Q1 2022, primarily due to lower volumes and freight rates in the China service and decreased volumes in Hawaii, Alaska, and Guam. The Logistics segment also experienced a decrease in operating income. However, the company expects improved trade dynamics in the second half of 2023 and anticipates Q2 operating income to be higher than Q1.
Q1 2023 EPS was $0.94, a decrease from $8.23 in Q1 2022.
Net income for Q1 2023 was $34.0 million, compared to $339.2 million in Q1 2022.
Consolidated revenue for Q1 2023 was $704.8 million, down from $1,165.5 million in Q1 2022.
The company repurchased approximately 0.7 million shares in Q1 2023.
Matson
Matson
Matson Revenue by Segment
Revenue by Segment
Ocean Transportation Revenue
CapyFin.comLogistics Revenue
CapyFin.com Forward Guidance
Matson expects consolidated operating income in the second quarter of 2023 to be higher than the first quarter.
Positive Outlook
- Normal seasonality to return to domestic tradelanes
- Normal seasonality to return to Logistics
- Continued economic growth in Alaska to be supportive of improved freight demand
- Additional three million shares approved for share repurchase program
- Committed to the return of excess capital to shareholders
Challenges Ahead
- China service to experience freight demand levels below normalized conditions
- Muted freight demand in Hawaii
- Muted freight demand in Guam
- Higher inflation creates uncertainty in the economic growth trajectory
- Higher interest rates create uncertainty in the economic growth trajectory
Revenue & Expenses
Visualization of income flow from segment revenue to net income