Core Viewpoint - Matson, Inc. has approved an increase of three million shares to its existing share repurchase program, extending it until December 31, 2027, with 0.5 million shares remaining as of February 26, 2025 [1][2]. Company Overview - Matson, Inc., founded in 1882, is a prominent provider of ocean transportation and logistics services, primarily serving the non-contiguous economies of Hawaii, Alaska, and Guam, as well as other island economies in Micronesia [3]. - The company operates a fleet that includes containerships, combination container and roll-on/roll-off ships, and custom-designed barges, and offers logistics services that extend throughout North America and Asia [3]. Share Repurchase Program - Since the initiation of the share repurchase program in August 2021, Matson has repurchased 11.5 million shares for approximately $1.0 billion [2]. - The company plans to continue its disciplined and opportunistic approach to capital allocation, focusing on returning excess cash to shareholders to enhance long-term shareholder value [2]. - Shares will be repurchased in the open market at the company's discretion, influenced by capital needs, market price, and general market conditions [2].

Financial Data and Key Metrics Changes - For Q4 2024, consolidated operating income increased by $72.2 million year-over-year to $147.5 million, driven by higher contributions from Ocean Transportation and Logistics [36][39] - Full year 2024 consolidated operating income rose by $208.5 million year-over-year to $551.3 million, primarily due to significantly higher freight rates in China and increased volume [39][50] - Net income for Q4 2024 was $128 million, with diluted earnings per share at $3.8, impacted by an $18.4 million impairment charge [39][52] Business Line Data and Key Metrics Changes - Ocean Transportation operating income for Q4 2024 was significantly higher due to elevated freight rates in China, with a year-over-year increase in operating income [36][39] - Logistics operating income for Q4 2024 was $10.1 million, reflecting a year-over-year increase of $1.2 million, primarily from supply chain management [33][34] - SSAT terminal joint venture incurred a loss of $9.5 million in Q4 2024, impacted by an $18.4 million impairment charge [29][32] Market Data and Key Metrics Changes - Hawaii container volume decreased by 1.7% year-over-year in Q4 2024, attributed to lower general demand [11] - Guam's container volume decreased by 10% year-over-year in Q4 2024, primarily due to lower demand from retail and food and beverage segments [24] - Alaska's container volume increased by 1.1% year-over-year in Q4 2024, driven by higher northbound volume [26] Company Strategy and Development Direction - The company remains focused on maintaining vessel schedule integrity and reliability in logistics and ocean transportation operations [56] - There is a commitment to organic growth and potential acquisitions, with a focus on niche defensible businesses [57][70] - The company plans to continue returning capital to shareholders through dividends and share repurchase programs [41][57] Management's Comments on Operating Environment and Future Outlook - Management expects elevated freight rates in the China service to continue into Q1 2025, with a potential moderation in rates depending on geopolitical factors and supply chain activity [22][50] - The company anticipates that the normalization of trade conditions in the Red Sea could impact freight rates positively [22][50] - There is uncertainty regarding the impact of tariffs and macroeconomic conditions on consumer demand and freight rates [20][21] Other Important Information - The company generated approximately $767.8 million in cash flow from operations for the full year 2024, with significant capital expenditures planned for 2025 [41][45] - The company repurchased approximately 1.6 million shares for a total cost of $199.1 million in 2024 [41][42] - The delivery of new Aloha class vessels has been delayed by approximately four months, with expected delivery in 2027 and 2028 [46][110] Q&A Session Summary Question: Outlook for Q1 EBIT - Management indicated that the outlook for Q1 EBIT is driven by elevated rates, particularly in China, and steady performance in domestic trade lanes [60][62] Question: Rate Trends - Management confirmed that freight rates remained steady from Q2 to Q4 2024, with a reduction in peak season surcharges impacting rates [66][67] Question: Capital Allocation Opportunities - The company is focused on organic growth opportunities in Ocean Transportation and a mix of organic and M&A opportunities in Logistics [70][71] Question: USTR Proposed Rule on China Shipbuilding - Management views the USTR proposal as part of ongoing discussions between the U.S. and China, with potential impacts on their fleet but no immediate changes expected [81][85] Question: Impact of Red Sea Situation - Management explained that if the Red Sea situation normalizes, it could lead to lower international freight rates, but the overall pricing structure may remain elevated due to other factors [100][102] Question: New Vessel Construction Delays - Management provided details on the reasons for the delay in new vessel construction and expressed confidence in the overall project timeline despite potential risks [106][110] Question: Jones Act Support - Management confirmed no changes in their stance on Jones Act support, expecting continued bipartisan backing [116][117]

Core Viewpoint - Matson (MATX) reported quarterly earnings of $3.80 per share, exceeding the Zacks Consensus Estimate of $3.20 per share, and showing significant growth from $1.78 per share a year ago, indicating strong performance in the ocean transportation and logistics services sector [1][2]. Financial Performance - The company achieved revenues of $890.3 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 5.48% and up from $788.9 million year-over-year [2]. - Over the last four quarters, Matson has consistently surpassed consensus EPS estimates, achieving this four times [2]. Stock Performance - Matson shares have increased approximately 6.3% since the beginning of the year, outperforming the S&P 500's gain of 1.7% [3]. - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for continued outperformance in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.52 on revenues of $774.28 million, while for the current fiscal year, the estimate is $10.21 on revenues of $3.31 billion [7]. - The trend of estimate revisions for Matson is favorable, which is a positive indicator for future stock performance [6]. Industry Context - The Transportation - Services industry, to which Matson belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, suggesting potential challenges ahead [8].

Financial Performance - For Q4 2024, Matson reported net income of $128.0 million, or $3.80 per diluted share, compared to $62.4 million, or $1.78 per diluted share in Q4 2023[1]. - Consolidated revenue for Q4 2024 was $890.3 million, an increase of 12.9% from $788.9 million in Q4 2023[1]. - Ocean Transportation revenue increased by $332.7 million, or 13.4%, to $2,809.7 million for the year ended December 31, 2024, compared to $2,477.0 million in 2023[21]. - Net income for the year ended December 31, 2024, was $476.4 million, up 60.3% from $297.1 million in 2023[47]. - Operating income for the year ended December 31, 2024, was $551.3 million, a significant increase of 60.7% from $342.8 million in 2023[43]. - EBITDA for the year ended December 31, 2024, was $738.9 million, up 42.9% from $516.7 million in 2023[49]. - Basic earnings per share for Q4 2024 were $3.87, compared to $1.80 in Q4 2023, reflecting a 115.6% increase[43]. Revenue Breakdown - Ocean Transportation revenue increased by $102.4 million, or 16.0%, in Q4 2024, primarily due to significantly higher freight rates in China and increased volume[16]. - The company's container volume in China rose by 7.2% year-over-year in Q4 2024, driven by seasonally stronger freight demand[4]. - Logistics revenue decreased by $5.5 million, or 0.9%, to $612.1 million for the year ended December 31, 2024, compared to $617.6 million in 2023[29]. - Operating income for Logistics increased by $2.4 million, or 5.0%, to $50.4 million in 2024, compared to $48.0 million in 2023[30]. Operating Income and Expectations - Operating income for Ocean Transportation rose by $206.1 million, or 69.9%, to $500.9 million in 2024, up from $294.8 million in 2023[23]. - For 2025, Matson expects consolidated operating income to be moderately lower than the $551.3 million achieved in 2024, depending on trade flow normalization in the Red Sea and other factors[10]. - The company expects Ocean Transportation operating income for Q1 2025 to be meaningfully higher than the $27.6 million achieved in Q1 2024[8]. Cash Flow and Capital Management - Cash and Cash Equivalents increased by $132.8 million to $266.8 million as of December 31, 2024, from $134.0 million at the end of 2023[31]. - Net cash from operating activities was $767.8 million for the year ended December 31, 2024, compared to $510.5 million in 2023[31]. - Total debt decreased by $39.7 million to $400.9 million as of December 31, 2024[31]. - The Company repurchased approximately 1.6 million shares for a total cost of $201.0 million during the full year 2024[32]. - The Company declared a cash dividend of $0.34 per share payable on March 6, 2025[32]. Tax and Liabilities - The company's effective tax rate for Q4 2024 was 19.1%, with an expected rate of approximately 22.0% for the full year 2025[12]. - Total long-term liabilities increased to $1,383.0 million in 2024, up from $1,331.6 million in 2023, a rise of 3.9%[45]. - The company’s total current liabilities remained stable at $560.4 million in 2024, slightly down from $562.3 million in 2023[45]. Joint Ventures and Impairments - The loss from the SSAT joint venture in Q4 2024 was $9.5 million, significantly lower than the income of $4.1 million in Q4 2023, due to an $18.4 million impairment charge[7]. - The SSAT terminal joint venture incurred a loss of $1.0 million in 2024, down from income of $2.2 million in 2023, due to an impairment charge of $18.4 million[24]. Capital Expenditures - Matson anticipates capital expenditures of approximately $120 to $140 million for maintenance and $305 million for new vessel construction in 2025[13].

Core Viewpoint - Matson, Inc. will release its fourth quarter financial results on February 25, 2025, with a conference call scheduled to discuss these results [1][2]. Company Overview - Matson, founded in 1882, is a leading provider of ocean transportation and logistics services, primarily serving the non-contiguous economies of Hawaii, Alaska, and Guam, as well as other island economies in Micronesia [3]. - The company operates a fleet that includes containerships, combination container and roll-on/roll-off ships, and custom-designed barges [3]. - Matson Logistics, established in 1987, enhances the company's transportation network across North America and Asia, offering integrated logistics services such as rail intermodal, highway brokerage, warehousing, freight consolidation, supply chain management, and freight forwarding to Alaska [3].

Company Overview - Matson, Inc. is a leading provider of ocean transportation and logistics services, founded in 1882 [2] - The company offers ocean freight transportation services to Hawaii, Alaska, Guam, and other island economies in Micronesia [2] - Matson operates premium expedited services from China to Long Beach, California, and provides services to Okinawa, Japan, and various South Pacific islands [2] - The fleet includes containerships, combination container and roll-on/roll-off ships, and custom-designed barges [2] - Matson Logistics, established in 1987, extends the company's transportation network throughout North America and Asia, offering integrated logistics services [2] Upcoming Events - Matt Cox, Chairman and CEO of Matson, will attend the Stifel 2025 Transportation & Logistics Conference on February 11, 2025, in Miami, Florida [1] - The company will provide access to presentation slides on its website on the same date [1]

Core Viewpoint - Matson (MATX) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Matson for the fiscal year ending December 2024 is projected at $13.21 per share, reflecting a 58.8% increase from the previous year's reported figure [8]. - Over the past three months, the Zacks Consensus Estimate for Matson has risen by 8.2%, indicating a trend of increasing earnings estimates [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Matson to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for near-term price appreciation due to favorable earnings estimate revisions [10]. Impact of Institutional Investors - Changes in earnings estimates significantly influence institutional investors' valuation models, leading to buying or selling actions that affect stock prices [4]. - The correlation between earnings estimate revisions and stock price movements underscores the importance of tracking these revisions for investment decisions [6].

Company Overview - Matson, Inc. is a leading provider of ocean transportation and logistics services, founded in 1882 [2] - The company offers ocean freight transportation services to Hawaii, Alaska, Guam, and other island economies in Micronesia [2] - Matson operates premium expedited services from China to Long Beach, California, and provides service to Okinawa, Japan, and various islands in the South Pacific [2] - The fleet includes containerships, combination container and roll-on/roll-off ships, and custom-designed barges [2] - Matson Logistics, established in 1987, extends the company's transportation network throughout North America and Asia, offering integrated logistics services [2] Upcoming Events - Joel Wine, Executive Vice President and Chief Financial Officer of Matson, will present an overview of the company at the Stephens 2024 Annual Investment Conference on November 20, 2024 [1] - The presentation slides will be accessible on Matson's website on the same day [1]

Core Insights - The article emphasizes the importance of the Zacks Rank and Style Scores system in identifying strong stocks, particularly focusing on value investing strategies [1][2][3] Company Overview - Matson (MATX) is highlighted as a stock to watch, currently holding a Zacks Rank of 1 (Strong Buy) and a Value grade of A [4] - The stock is trading with a P/E ratio of 16.14, which is lower than the industry's average of 17.74 [4] - MATX has a P/B ratio of 2.07, compared to the industry's average P/B of 3.18, indicating solid valuation [5] - The P/CF ratio for MATX is 7.71, significantly lower than the industry's average P/CF of 12.23, suggesting it may be undervalued [6] Valuation Metrics - Over the past 12 months, MATX's Forward P/E has fluctuated between 11.88 and 16.31, with a median of 13.86 [4] - The P/B ratio has ranged from 1.30 to 2.07, with a median of 1.70 [5] - MATX's P/CF has varied from 5.18 to 7.94, with a median of 6.84 [6] Investment Outlook - The combination of strong valuation metrics and a positive earnings outlook positions MATX as an impressive value stock at the moment [7]

Have you been paying attention to shares of Matson (MATX) ? Shares have been on the move with the stock up 12.7% over the past month. The stock hit a new 52-week high of $155.97 in the previous session. Matson has gained 41.3% since the start of the year compared to the -0.6% move for the Zacks Transportation sector and the -9.4% return for the Zacks Transportation - Services industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earni ...