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Matson (MATX) to Report Q3 Earnings: What's in the Offing?

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Matson (MATX - Free Report) is scheduled to report third-quarter 2021 results on Nov 3, after market close.

The company boasts a stellar surprise history with its earnings having surpassed the Zacks Consensus Estimate in each of the last four quarters, the average being 4.7%.

Matson, Inc. Price and EPS Surprise

Matson, Inc. Price and EPS Surprise

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

The Zacks Consensus Estimate for third-quarter 2021 earnings has been revised 34.1% upward over the past 60 days.

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

We expect the company’s third-quarter top line performance to have been driven by the gradual uptick in economic activities in the United States as the Delta-variant induced cases recede. The widespread vaccination is also likely to boost the to-be-reported results.

The Zacks Consensus Estimate for third-quarter 2021 logistics revenues is currently pegged at $194 million, indicating an increase of 1% from the figure reported in second-quarter 2021. The same hints at a rise of 32% from the year-ago quarter’s actuals. Higher transportation brokerage revenues are likely to contribute to the segmental results for the quarter to be reported.

The Zacks Consensus Estimate for third-quarter Ocean Transportation revenues is currently pegged at $872 million, implying a rise of 27.7% from the sequential quarter’s reported number. The same suggests an increase of 75.1% from the year-ago quarter’s actuals. Improved revenues in China and Hawaii as well as increased fuel surcharge revenues are expected to have inflated segmental revenues.

Elevated total expenses, mainly due to escalated fuel costs as oil price moves north, are likely to have dented the bottom line in the quarter to be reported.

What Does the Zacks Model Say?

Our proven model does not conclusively 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 odds of an earnings beat. However, that 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 $6.53. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Highlights of Q2 Earnings

Matson's second-quarter earnings of $3.71 per share surpassed the Zacks Consensus Estimate of $3.67. Total revenues of $874.9 million surpassed the Zacks Consensus Estimate of $856.5 million, aided by an impressive performance of both its segments.

Stocks to Consider

Investors interested in the broader Transportation sector may consider Copa Holdings (CPA - Free Report) , Saia (SAIA - Free Report) and Schneider National (SNDR - Free Report) , which possess the right combination of elements to beat on earnings this reporting cycle.

Copa Holdings has an Earnings ESP of +25.74% and is Zacks #3 Ranked, presently. The company will release third-quarter 2021 results on Nov 17.

Saia has an Earnings ESP of +1.32% and is Zacks #2 Ranked, presently. The company will release third-quarter 2021 results on Oct 28.

Schneider has an Earnings ESP of +2.37% and is a #3 Ranked stock, presently. The company will release third-quarter 2021 results on Oct 28.

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