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Mar 31, 2024
Matson Q1 2024 Earnings Report
Matson's first quarter 2024 results were announced, demonstrating a solid start to the year with Ocean Transportation exceeding expectations and Logistics meeting expectations.
Key Takeaways
Matson, Inc. reported a net income of $36.1 million, or $1.04 per diluted share, for the quarter ended March 31, 2024. Consolidated revenue for the first quarter 2024 was $722.1 million.
1Q24 EPS reached $1.04, compared to $0.94 in 1Q23.
1Q24 Net Income was $36.1 million, an increase from $34.0 million in 1Q23.
1Q24 Consolidated Operating Income totaled $36.9 million, slightly lower than $38.7 million in 1Q23.
The outlook for Full Year 2024 Consolidated Operating Income was raised.
Matson
Matson
Matson Revenue by Segment
Revenue by Segment
Ocean Transportation Revenue
CapyFin.com Forward Guidance
For full year 2024, the Company expects consolidated operating income to be modestly higher than the $342.8 million achieved in 2023 and expects comparable seasonality to the prior year.
Positive Outlook
- Ocean Transportation operating income is expected to be higher than the prior year’s result.
- Steady U.S. consumer demand is expected to lead to improving demand for Matson’s CLX and MAX services in 2024 as compared to 2023.
- Trade demand dynamics across most of domestic tradelanes in 2024 to be comparable to 2023 as consumer-related spending is expected to remain largely stable.
- Expects average freight rates in 2024 to be higher than the levels achieved in 2023.
- Expects continued improvement in the Guam economy with a low unemployment rate and a modest increase in tourism.
Challenges Ahead
- Logistics expects challenging business conditions for transportation brokerage.
- Logistics expects lower year-over-year operating income.
- Expect volume in 2024 to approach the level achieved in 2023, reflecting modest economic growth in Hawaii and stable market share.
- Company’s container volume in the first quarter 2024 decreased 4.0 percent year-over-year.
- Company expects volume to approximate the level achieved last year in Alaska.