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Matson boasts an impressive surprise history with its earnings having surpassed the Zacks Consensus Estimate in three of the last four quarters (in-line earnings in the remaining quarter), the average beat being 3.94%.
The Zacks Consensus Estimate for fourth-quarter 2021 earnings has been revised 48% upward over the past 60 days.
Against this backdrop, let’s discuss the factors that might have impacted Matson’s performance in the December quarter.
We expect Matson’s fourth-quarter performance to have been driven by the gradual uptick in economic activities in the United States. The widespread vaccination is also likely to boost the to-be-reported results by buoying demand for MATX's services. This, in turn, might have perked up revenues on a year-over-year basis.
The Zacks Consensus Estimate for fourth-quarter 2021 logistics revenues is currently pegged at $203 million, indicating an increase of 30.1% from the figure reported in fourth-quarter 2020. Factors like increased goods consumption, inventory restocking, favorable supply and demand fundamentals in core markets are likely to drive segmental results in the quarter to be reported.
The Zacks Consensus Estimate for fourth-quarter Ocean Transportation revenues is currently pegged at $980 million, implying a surge of 80.1%. from the fourth-quarter 2020’s reported number. The same hints at an increase of 13.4% from the third-quarter 2021 actuals. Strong demand for MATX’s China service is likely to have inflated segmental revenues.
Elevated total expenses due to escalated operating costs 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 $8.85. 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 Q3 Earnings
Matson's third-quarter earnings of $6.53 per share matched the Zacks Consensus Estimate. Total revenues of $1,071.6 million surpassed the Zacks Consensus Estimate of $1,066 million, aided by an impressive performance of both its segments.
Stocks to Consider
Investors interested in the broader Transportation sector may consider Eagle Bulk Shipping Inc. , Gol Linhas and Expeditors International of Washington, Inc. (EXPD - Free Report) as these stocks possess the right combination of elements to beat on earnings this reporting cycle.
Eagle Bulk currently has an Earnings ESP of +25.88% and a Zacks Rank #3. Eagle Bulk will report fourth-quarter results on Mar 3.
Eagle Bulk’s shares have gained 90% in a year. It has a trailing four-quarter earnings surprise of 33% (one miss and three beats), on average. Strong trading volumes are likely to have boosted EGLE’s performance in the to-be-reported quarter.
Gol Linhas currently has an Earnings ESP of +8.29% and a Zacks Rank of 3. GOL will report fourth-quarter results on Feb 17.
Gol Linhas’ fourth-quarter results are likely be boosted by improved air-travel demand in Brazil. Load factor (% of seats filled by passengers) is likely to have improved in the fourth quarter owing to upbeat traffic.
Expeditors has an Earnings ESP of +2.97% and is currently a #2 Ranked player. Expeditors will release fourth-quarter 2021 results on Feb 22.
EXPD is being aided by an uptick in airfreight revenues. Due to the coronavirus-induced imbalance between scheduled capacity and demand, EXPD is using charters to meet customer needs. Revenues from the airfreight services unit increased approximately 54% year over year in the first nine months of 2021.
Image: Bigstock
Matson (MATX) to Report Q4 Earnings: What's in the Offing?
Matson (MATX - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 17, after market close.
Matson boasts an impressive surprise history with its earnings having surpassed the Zacks Consensus Estimate in three of the last four quarters (in-line earnings in the remaining quarter), the average beat being 3.94%.
Matson, Inc. Price and EPS Surprise
Matson, Inc. price-eps-surprise | Matson, Inc. Quote
The Zacks Consensus Estimate for fourth-quarter 2021 earnings has been revised 48% upward over the past 60 days.
Against this backdrop, let’s discuss the factors that might have impacted Matson’s performance in the December quarter.
We expect Matson’s fourth-quarter performance to have been driven by the gradual uptick in economic activities in the United States. The widespread vaccination is also likely to boost the to-be-reported results by buoying demand for MATX's services. This, in turn, might have perked up revenues on a year-over-year basis.
The Zacks Consensus Estimate for fourth-quarter 2021 logistics revenues is currently pegged at $203 million, indicating an increase of 30.1% from the figure reported in fourth-quarter 2020. Factors like increased goods consumption, inventory restocking, favorable supply and demand fundamentals in core markets are likely to drive segmental results in the quarter to be reported.
The Zacks Consensus Estimate for fourth-quarter Ocean Transportation revenues is currently pegged at $980 million, implying a surge of 80.1%. from the fourth-quarter 2020’s reported number. The same hints at an increase of 13.4% from the third-quarter 2021 actuals. Strong demand for MATX’s China service is likely to have inflated segmental revenues.
Elevated total expenses due to escalated operating costs 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 $8.85. 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 Q3 Earnings
Matson's third-quarter earnings of $6.53 per share matched the Zacks Consensus Estimate. Total revenues of $1,071.6 million surpassed the Zacks Consensus Estimate of $1,066 million, aided by an impressive performance of both its segments.
Stocks to Consider
Investors interested in the broader Transportation sector may consider Eagle Bulk Shipping Inc. , Gol Linhas and Expeditors International of Washington, Inc. (EXPD - Free Report) as these stocks possess the right combination of elements to beat on earnings this reporting cycle.
Eagle Bulk currently has an Earnings ESP of +25.88% and a Zacks Rank #3. Eagle Bulk will report fourth-quarter results on Mar 3.
Eagle Bulk’s shares have gained 90% in a year. It has a trailing four-quarter earnings surprise of 33% (one miss and three beats), on average. Strong trading volumes are likely to have boosted EGLE’s performance in the to-be-reported quarter.
Gol Linhas currently has an Earnings ESP of +8.29% and a Zacks Rank of 3. GOL will report fourth-quarter results on Feb 17.
Gol Linhas’ fourth-quarter results are likely be boosted by improved air-travel demand in Brazil. Load factor (% of seats filled by passengers) is likely to have improved in the fourth quarter owing to upbeat traffic.
Expeditors has an Earnings ESP of +2.97% and is currently a #2 Ranked player. Expeditors will release fourth-quarter 2021 results on Feb 22.
EXPD is being aided by an uptick in airfreight revenues. Due to the coronavirus-induced imbalance between scheduled capacity and demand, EXPD is using charters to meet customer needs. Revenues from the airfreight services unit increased approximately 54% year over year in the first nine months of 2021.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.