Market Weekly: July 5 – 11 2020

#24119
Truman
Participant

Shipping logistics firm $MATX +22.9% after guides Q2 EPS above consensus – strong China numbers

Matson Announces Preliminary 2Q20 Results, Provides Business Update And Announces 2Q20 Earnings Call Date

– Expects 2Q20 operating income for Ocean Transportation to be $40.5 to $42.5 million vs. $19.7 million in 2Q19

– Expects 2Q20 operating income for Logistics to be $8.0 to $9.0 million vs. $11.3 million in 2Q19

– Expects 2Q20 net income and diluted EPS to be $30.4 to $32.6 million and $0.70 to $0.75, respectively

– China service strength, including additional vessel charters, primarily drove increase in operating income

– Allowable borrowings of approximately $425 million at quarter end and leverage ratio per debt agreements below 3.25x

– Announces second quarter earnings call date on August 5, 2020

Second Quarter Tradelane Volume (Forty-foot equivalent units (FEU)) (1)(2):

For the three months ended June 30, 2020 compared to the three months ended June 30, 2019 and on a FEU basis:

Hawaii container volume decreased 4.0 percent primarily due to lower volume from the state’s COVID-19 mitigation efforts including restrictions on tourism, partially offset by volume associated with the dry-docking of one of Pasha’s vessels;
Alaska volume decreased 9.0 percent with lower northbound volume primarily due to lower demand for retail-related goods, as an effect of the state’s COVID-19 mitigation efforts, and one less sailing compared to the prior year period, and moderately lower southbound volume;
China volume was 68.1 percent higher primarily due to volume from chartered voyages in addition to the regular CLX service;
Guam volume was 12.5 percent lower primarily due to lower demand for retail-related goods as COVID-19 mitigation measures remained in effect; and
Other containers volume decreased 18.8 percent.

https://www.prnewswire.com/news-releases/matson-announces-preliminary-2q20-results-provides-business-update-and-announces-2q20-earnings-call-date-301091023.html