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Matson (MATX) to Post Q1 Earnings: What's in the Offing?

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Matson MATX is scheduled to report first-quarter 2022 results on May 3, 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 3.6%.

The Zacks Consensus Estimate for first-quarter 2022 earnings has been revised 39.9% upward over the past 90 days.

Matson, Inc. Price and EPS Surprise

Matson, Inc. Price and EPS Surprise
Matson, Inc. Price and EPS Surprise

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

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

We expect Matson’s first-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 its revenues on from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for first-quarter 2022 logistics revenues is currently pegged at $235 million, indicating an increase of 55.6% from the figure reported in first-quarter 2021. Factors like increased goods consumption, inventory restocking, and favorable supply and demand fundamentals in the core markets are likely to drive segmental results in the quarter to be reported.

The Zacks Consensus Estimate for first-quarter 2022 Ocean Transportation revenues is currently pegged at $943 million, implying a surge of 68.1% from the first-quarter 2021’s reported number (on higher revenues in China, solid fuel-related surcharge revenues, and increased revenues in Hawaii and Alaska).

Increasing total expenses due to escalating 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 $8.13. 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 Q4 Earnings

Matson's fourth-quarter earnings of $9.39 per share surpassed the Zacks Consensus Estimate of $8.85. Total revenues of $1,267 million surpassed the Zacks Consensus Estimate of $1,184 million, aided by an impressive performance of both its segments.

Stocks to Consider

Investors interested in the broader Transportation sector can consider stocks like Old Dominion Freight Line, Inc. ODFL, Southwest Airlines LUV and Ryder System, Inc. R as these stocks possess the right combination of elements to beat estimates this reporting cycle.

Old Dominion has an Earnings ESP of +1.14% and a Zacks Rank of 3 at present. ODFL will release first-quarter 2022 results on Apr 27.

Improvement in the operating ratio (operating expenses as a percentage of revenues) is likely to get reflected in the first-quarter bottom line, driven by higher revenues.

Southwest Airlines has an Earnings ESP of +23.75% and is currently a #3 Ranked player. LUV will release first-quarter 2022 results on Apr 28.

Southwest Airlines expects first-quarter 2022 operating revenues to decline 8-10% from the first-quarter 2019 reading.

Ryder has an Earnings ESP of +5.04% and is currently a #2 Ranked player. R will release first-quarter 2022 results on Apr 27.

New business, favorable pricing and higher volumes might have aided Ryder’s first-quarter 2022 performance.

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


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Southwest Airlines Co. (LUV) : Free Stock Analysis Report

Ryder System, Inc. (R) : Free Stock Analysis Report

Old Dominion Freight Line, Inc. (ODFL) : Free Stock Analysis Report

Matson, Inc. (MATX) : Free Stock Analysis Report

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