Matson, Inc. (MATX) stock soared 4.33% in the after-hours trading session at the price of $86.25 after announcing its financial results for the third quarter of 2021. MATX is an international provider of ocean transportation and logistics services. The company offers a vital lifeline to non-contiguous island economies.
MATX Preliminary Third Quarter 2021 Financial Results
On 11th October 2021, MATX published its preliminary financial results for the third quarter ended 30th September 2021, and provided corporate updates. The earnings call for the third quarter of 2021 will be held on 3rd November 2021.
Management Comments
Chief Executive Officer of MATX, Matt Cox, stated that they had witnessed strong economic and business growth in the third quarter. The company made substantial production in Ocean Transportation and Logistics. Their Ocean Transportation continued to see raised demand due to expedited ocean services. Continued demand for the China service has caused higher year-over-year consolidated operating income. The supply chain jam continued combined with record restocking, peak season, and high consumption trends. They anticipate these performances to continue throughout the first half of 2022, he added.
The company continued to see solid demand in domestic ocean tradelanes with higher YoY volumes during the quarter. In Hawaii Island, they have encountered elevated westbound freight demand due to tourism and the resumption of economic activities after pandemic. The operating income in Logistics increased year-over-year compared to the previous year same quarter. Higher operating income resulted from large goods consumption, inventory restocking, and improved supply and demand fundamentals in the core business sectors. MATX expects third-quarter operating incomes of $358.0 to $363.0 million. The company expects the net income of $277.3 to $285.5 million for the third quarter of 2021, Mr. Cox concluded.
MATX Third Quarter 2021 Expectations
The company expects its operating income for Ocean Transportation to range from $358.0 to $363.0 million during the quarter ended 30th September 2021. MATX expects $15.0 to $16.0 million operating income for Logistics for the third quarter of 2021. The expected net income and diluted EPS range from $277.3 to $285.5 million and $6.39 to $6.58, respectively. For the third quarter of 2021, domestic tradelane volumes have expected to be greater than the same period of 2020.
Share Repurchase
During the third quarter that ended on 30th September 2021, MATX repurchased 1.5 million shares with a total worth of $115.7 million. As of 30th September 2021, the remaining shares in the company’s share repurchase program are approximately 1.5 million.
