Matson Q3 revenue beats estimates on strong China service demand

Overview

• U.S. Pacific carrier's Q3 consolidated revenue rose yr/yr, beating analyst expectations

• Q3 EPS increased to $6.96 from $4.24 a year earlier

• Company attributes growth to strong China service demand and higher freight rates

Outlook

• Matson expects Q4 operating income to be about 50% higher than Q4 2025

• Company sees strong demand and elevated freight rates in China service continuing into early 2027

• Matson expects full-year 2026 depreciation and amortization of about $205 mln

Result Drivers

• CHINA SERVICE DEMAND - Co said strong demand and elevated freight rates in China service drove substantial yr/yr increase in Ocean Transportation operating income

• ASIA PORT CONGESTION - Co said speed and reliability of China service differentiated it amid continued pressure on global shipping networks and congestion at key Asia ports

• LOGISTICS BROKERAGE - Co said higher contributions from transportation brokerage and freight forwarding drove increase in Logistics operating income

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the marine freight & logistics peer group is "buy"

• Wall Street's median 12-month price target for Matson Inc is $268.33, about 21.1% above its November 3 closing price of $221.57

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Nov 4 - Navios Maritime Q3 revenue tops estimates on higher charter rates

• Nov 4 - Denmark's Torm Q3 profit jumps on higher time charter equivalent rates

• Nov 4 - Norway's Wallenius Wilhelmsen Q3 profit rises on Asia shipping demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)