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Dec 31, 2020

Matson Q4 2020 Earnings Report

Matson's Q4 2020 earnings were announced, revealing strong performance in Ocean Transportation and Logistics.

Key Takeaways

Matson, Inc. reported a net income of $85.6 million, or $1.96 per diluted share, for the quarter ended December 31, 2020, compared to a net income of $15.6 million, or $0.36 per diluted share, for the same period in 2019. Consolidated revenue for the fourth quarter 2020 was $700.1 million, up from $540.7 million in the fourth quarter 2019. The increase in consolidated operating income was primarily driven by the strength of the China service.

4Q20 EPS reached $1.96.

Full Year 2020 EPS was $4.44.

Full Year 2020 Net Income amounted to $193.1 million.

Year-over-year increase in 4Q20 consolidated operating income was driven primarily by China service strength.

Total Revenue
$700M
Previous year: $541M
+29.5%
EPS
$1.96
Previous year: $0.36
+444.4%
Hawaii Containers Volume
37.6K
Previous year: 37.3K
+0.8%
Hawaii Automobiles Volume
12.2K
Previous year: 13.5K
-9.6%
Alaska Containers Volume
17.6K
Previous year: 14.8K
+18.9%
Gross Profit
$166M
Previous year: $75.2M
+121.0%
Cash and Equivalents
$14.4M
Previous year: $21.2M
-32.1%
Total Assets
$2.9B
Previous year: $2.85B
+1.9%

Matson

Matson

Matson Revenue by Segment

Forward Guidance

The Company expects elevated consumption of e-commerce and other commodities coupled with other supply and demand factors in the tradelane to largely remain favorable in the first half of 2021 as the pandemic persists.

Positive Outlook

  • Favorable supply and demand dynamics are expected to continue in the transpacific tradelane during the first half of 2021.
  • Elevated consumption of e-commerce and other commodities are expected to persist.
  • Supply and demand factors are expected to remain favorable as the pandemic continues.
  • Matson expects some of the supply and demand factors that they are currently benefitting from to remain.
  • Demand for CLX and CLX+ services is expected to continue to be driven by the remaining supply and demand factors.

Challenges Ahead

  • Tourism levels are expected to remain low until the pandemic subsides, negatively impacting Hawaii's economy.
  • Depressed tourism levels are expected to negatively impact the Guam economy in the near-term.
  • The Alaska economy continues to be negatively impacted by the economic effects from the COVID-19 pandemic.
  • The Alaska economy continues to be negatively impacted by a low oil price environment.
  • The Alaska economy is expected to remain challenged until the pandemic subsides.

Revenue & Expenses

Visualization of income flow from segment revenue to net income