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Jun 30, 2024
Matson Q2 2024 Earnings Report
Matson's financial performance improved in the second quarter of 2024, with increased operating income in both Ocean Transportation and Logistics segments, driven by higher freight rates in the China service and strength in supply chain management.
Key Takeaways
Matson reported net income of $113.2 million, or $3.31 per diluted share, for the second quarter of 2024, compared to $80.8 million, or $2.26 per diluted share, for the same period in 2023. Consolidated revenue for the quarter was $847.4 million, up from $773.4 million in the second quarter of 2023. The increase was primarily driven by higher freight rates in the China service and increased volumes in Alaska.
Second quarter EPS was $3.31, compared to $2.26 in the second quarter of 2023.
Net income for the second quarter was $113.2 million, versus $80.8 million in the second quarter of 2023.
Consolidated operating income for the second quarter was $124.6 million, compared to $96.7 million in the second quarter of 2023.
The company repurchased approximately 0.6 million shares during the second quarter.
Matson
Matson
Matson Revenue by Segment
Revenue by Segment
Ocean Transportation Revenue
CapyFin.comLogistics Revenue
CapyFin.com Forward Guidance
Matson expects elevated freight rates in its China service during the traditional peak season in the third and early fourth quarters. The company anticipates domestic tradelane volumes to approach 2023 levels. Third quarter Ocean Transportation operating income is expected to be meaningfully higher than the $118.2 million achieved last year, and fourth quarter operating income is expected to be moderately higher than the $66.4 million achieved in the fourth quarter 2023. Logistics operating income in both the third and fourth quarters of 2024 is expected to approximate the levels achieved last year.
Positive Outlook
- China service to continue to see elevated freight rates during the traditional peak season in the third and early fourth quarters.
- Domestic tradelane volumes are expected to approach the levels achieved in 2023.
- Third quarter 2024 operating income for Ocean Transportation is expected to be meaningfully higher than the $118.2 million achieved last year.
- Fourth quarter 2024 operating income for Ocean Transportation is expected to be moderately higher than the $66.4 million achieved in the fourth quarter 2023.
- Logistics operating income in both the third and fourth quarters of 2024 to approximate the levels achieved last year.
Challenges Ahead
- Freight rate trajectory after the peak season is uncertain.
- Volumes in 2024 expected to be modestly lower than 2023 in Hawaii service.
- Continued challenges in population growth and lower discretionary income as a result of higher inflation and interest rates may impact performance.
- Guam volume is expected to approach the level achieved last year.
- Alaska volume to approximate the level achieved last year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income