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Matson (MATX) to Report Q1 Earnings: What's in the Cards?

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Matson (MATX - Free Report) is scheduled to report first-quarter 2021 results on Apr 27.

The company boasts a stellar surprise history with its earnings having surpassed the Zacks Consensus Estimate in three of the last four quarters (reported in-line earnings in the remaining one), the average beat being 3.4%. Moreover, the Zacks Consensus Estimate for first-quarter 2021 earnings has been revised 31% upward over the past 60 days.

Matson, Inc. Price and EPS Surprise

Matson, Inc. Price and EPS Surprise

Matson, Inc. price-eps-surprise | Matson, Inc. Quote

Against this backdrop, let’s discuss the factors that might have impacted Matson’s performance in the March quarter.

We expect the company’s first-quarter performance to have been driven by resumed economic activities in the United States with the easing of restrictions. The widespread vaccination is also likely to have boosted the to-be-reported results of Matson by virtue of buoyant demand for its services. This, in turn, is likely to have led to higher revenues on a year-over-year basis.

Notably, the Zacks Consensus Estimate for first-quarter 2021 logistics revenues is currently pegged at $158 million, indicating an increase of 39.8% from the figure reported in first-quarter 2020. Higher transportation brokerage revenues are likely to have contributed to segmental results in the quarter to be reported. Moreover, the Zacks Consensus Estimate for first-quarter 2021 Ocean Transportation revenues is currently pegged at $530 million, implying a rise of 32.1%. from the prior-year reported number. Better freight revenues in the China service are likely to have inflated segmental revenues.

Despite the recent improvement, tourism activity to the state of Hawaii where Matson is based, remained weak in the first quarter compared with the pre-pandemic levels. Further, this might have dented the company’s container volume in the Hawaii service.

What Does the Zacks Model Say?

The proven Zacks model does not predict an earnings beat for Matson this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Matson has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate of $1.86 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Matson sports a Zacks Rank of 1, currently.

Highlights of Q4 Earnings

Matson’s earnings of $1.96 per share surpassed the Zacks Consensus Estimate of $1.82. Moreover, the bottom line surged 444.4% on a year-over-year basis. Operating revenues of $700.1 million also beat the Zacks Consensus Estimate of $664.4 million.

Stocks to Consider

Investors interested in the broader Transportation sector may consider JetBlue Airways Corporation (JBLU - Free Report) , Herc Holdings Inc. (HRI - Free Report)  and Landstar System, Inc. (LSTR - Free Report)  as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

Landstar has an Earnings ESP of +0.79% and is Zacks #2 Ranked, presently. The company will release first-quarter 2021 results on Apr 21.

Herc Holdings has an Earnings ESP of +18.80% and a Zacks Rank of 2 at present. The company will release first-quarter 2021 results on Apr 22.

JetBlue Airways currently has an Earnings ESP of +3.09 and a Zacks Rank #3. The company is set to release first-quarter 2021 earnings numbers on Apr 27.

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