Matson (MATX) Tops Q3 EPS by 24c, Revenues Beat

Matson (NYSE: MATX) reported Q3 EPS of $1.63, $0.24 better than the analyst estimate of $1.39. Revenue for the quarter came in at $645.2 million versus the consensus estimate of $644.39 million.

• 3Q20 EPS of $1.63 vs. $0.84 in 3Q19
• 3Q20 Net Income of $70.9 million vs. $36.2 million in 3Q19
• 3Q20 EBITDA of $134.7 million vs. $89.1 million in 3Q19
• Year-over-year increase in consolidated operating income driven primarily by China service strength Available borrowings of approximately $519 million at quarter end and leverage ratio per debt agreements of 2.4x

"Matson's businesses continued to perform well in the third quarter despite the ongoing challenges from the COVID-19 pandemic and related economic effects," said Chairman and Chief Executive Officer Matt Cox. "Our China service, consisting of the CLX and CLX+ services, was the primary driver of the increase in consolidated operating income year-over-year as a result of strong demand for our expedited ocean services and ongoing challenges in the transpacific air freight markets. I am confident that we can make the CLX+ a permanent service because of Matson's fifteen-year track record of operating our industry leading expedited CLX service in the transpacific tradelane, the introduction of our new Alaska-to-Asia Express (AAX) service for Alaska seafood exports to Asia as part of the CLX+ westbound return trip to China, and the likelihood of continued favorable transpacific tradelane supply and demand dynamics going forward."

Mr. Cox added, "In our other core tradelanes, we saw an improvement in freight volume in each of the tradelanes from the levels achieved in the second quarter during the height of the COVID-19 pandemic as freight demand improved with the reopening of local economies. Hawaii volume approached the level achieved in the prior year quarter, although continued restrictions on tourism and a second shelter-in-place order in the latter half of the third quarter weighed on freight demand. In Alaska and Guam, we saw modestly higher year-over-year volume growth. Logistics operating income increased year-over-year as the continued reopening of the U.S. economy led to improved performance in all of the business lines. We also continued to achieve cost benefits from our previously-announced cost management initiatives. For the fourth quarter of 2020, we expect our businesses to continue to perform well and to generate strong financial results."

For earnings history and earnings-related data on Matson (MATX) click here.

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