Corrected: Matson Q2 revenue rises on China demand, raises outlook
CORRECTED-Matson Q2 revenue rises on China demand, raises outlook Corrects second Overview bullet to say Q2 EPS, not Q2 adjusted EPS
Overview
U.S. Pacific ocean carrier's Q2 revenue rose 17% yr/yr, driven by China service demand
Q2 EPS rose to $4.27 from $2.92 yr/yr
Company repurchased 0.3 mln shares in Q2 and raised full-year outlook
Outlook
Matson expects full-year 2026 consolidated operating income to be higher than in 2025
Company sees Q3 2026 Ocean Transportation operating income about 45% above Q3 2025
Matson expects Q4 2026 Ocean Transportation operating income to be modestly lower than Q4 2025
Result Drivers
CHINA SERVICE DEMAND - Higher volume and freight rates in China service, especially for e-commerce, garments and e-goods, drove revenue and operating income growth
LOGISTICS SEGMENT - Higher contributions from freight forwarding and transportation brokerage boosted logistics operating income, partially offset by lower warehousing contribution
HIGHER FUEL COSTS - Increased vessel operating expenses from higher fuel prices partially offset gains in ocean transportation operating income
Company press release: ID:nPn7Y58Bka
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| $969.4 mln | $884.7 mln (2 Analysts) |
Q2 EPS |
| $4.27 |
|
Q2 Net Income |
| $129.4 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the marine freight & logistics peer group is "buy."
Wall Street's median 12-month price target for Matson Inc is $240.00, about 18.5% above its July 31 closing price of $202.59
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago
Reuters Recommended Reads
Aug 3 - Finland's Aspo Q2 profit rises on pricing strength; plans ESL Shipping demerger
Aug 3 - UK's Clarkson interim revenue rises, helped by elevated freight rates
July 31 - Universal Logistics Q2 revenue, adjusted EPS fall on lower intermodal volumes
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)