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Dec 31, 2022
Matson Q4 2022 Earnings Report
Matson's Q4 2022 earnings decreased compared to Q4 2021, driven by lower contribution from China service and lower volumes in domestic ocean tradelanes.
Key Takeaways
Matson, Inc. reported a net income of $78.0 million, or $2.10 per diluted share, for the quarter ended December 31, 2022, compared to $394.5 million, or $9.39 per diluted share, for the same quarter in 2021. Consolidated revenue for the fourth quarter 2022 was $801.6 million compared with $1,267.0 million for the fourth quarter 2021. The decrease was primarily due to lower volume and average freight rates in China and lower volume in Hawaii.
4Q22 EPS was $2.10.
Full Year 2022 EPS was $27.07.
Full Year 2022 Net Income was $1,063.9 million and EBITDA was $1,526.2 million.
Year-over-year decrease in 4Q22 consolidated operating income was primarily driven by lower contribution from China service.
Approximately 1.5 million shares were repurchased in 4Q22.
Matson
Matson
Matson Revenue by Segment
Revenue by Segment
Ocean Transportation Revenue
CapyFin.com Forward Guidance
Matson expects its financial performance in the first quarter of 2023 to be the weakest of the year as normal seasonality returns to our domestic tradelanes and Logistics and our China service experiences freight demand levels below normalized conditions.
Positive Outlook
- Continued economic growth in Hawaii to be supportive of freight demand.
- Continued economic growth in Alaska to be supportive of freight demand.
- Continued economic growth in Guam to be supportive of freight demand.
- Disciplined approach to capital allocation.
- Commitment to the return of excess capital to shareholders.
Challenges Ahead
- Normal seasonality returns to our domestic tradelanes and Logistics.
- China service experiences freight demand levels below normalized conditions.
- Retailers continue to right-size inventories amid weakening consumer demand.
- Increasing interest rates create economic uncertainty.
- Higher inflation creates economic uncertainty.