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Matson (MATX) to Post Q2 Earnings: What's in the Offing?

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Matson (MATX - Free Report)  is scheduled to report second-quarter 2022 results on Aug 1, after market close.

MATX 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 2.1%.

The Zacks Consensus Estimate for second-quarter 2022 earnings has been revised 11.6% upward over the past 60 days.

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

We expect Matson’s second-quarter performance to have been driven by the gradual uptick in economic activities in the United States. The buoyant demand scenario for MATX's services is likely to have aided MATX’s top line.

The Zacks Consensus Estimate for second-quarter 2022 logistics revenues is currently pegged at $230 million, indicating an increase of 19.6% from the figure reported in second-quarter 2021. Factors like increased goods consumption, inventory restocking, favorable supply and demand fundamentals in the core markets are likely to drive segmental results for the quarter to be reported.

However, increasing total expenses due to escalating operating costs are likely to have dented the bottom line in the June quarter.

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 $9.38. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Matson currently carries a Zacks Rank #2.

Highlights of Q1 Earnings

Matson's first-quarter earnings of $8.23 per share surpassed the Zacks Consensus Estimate of $8.13. Total revenues of $1,165.5 million fell short of the Zacks Consensus Estimate of $1,77.7 million.

Stocks to Consider

Investors interested in the broader Transportation sector can consider stocks like Werner Enterprises (WERN - Free Report) and International Seaways (INSW - Free Report)  as these stocks possess the right combination of elements to beat estimates this reporting cycle. 

Werner has an Earnings ESP of +1.42% and a Zacks Rank #3 at present. WERN will release second-quarter 2022 results on Aug 3.

Werner’s efforts to reward its shareholders through dividends and share buybacks are impressive. Improvement in the freight scenario is aiding performances of the Logistics and Truckload Transportation Services (TTS) segments.

International Seaways has an Earnings ESP of +27.57% and is currently a #2 Ranked player. INSW will release second-quarter 2022 results on Aug 9.

International Seaways provides energy transportation services for crude oil and petroleum products. This tanker company owns and operates a fleet including ULCC, eight VLCCs, eight Aframaxes/LR2s, 12 Panamaxes/LR1s and 20 MR tankers. 

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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