Marine Transportation Stocks Q3 Teardown: Matson (NYSE:MATX) Vs The Rest

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Matson (NYSE:MATX) and the rest of the marine transportation stocks fared in Q3.

The growth of e-commerce and global trade continues to drive demand for shipping services, presenting opportunities for marine transportation companies. While ocean freight is more fuel efficient and therefore cheaper than its air and ground counterparts, it results in slower delivery times, presenting a trade off. To improve transit speeds, the industry continues to invest in digitization to optimize fleets and routes. However, marine transportation companies are still at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies’ offerings while fuel costs can influence profit margins. Geopolitical tensions can also affect access to trade routes, and if certain countries are banned from using passageways like the Panama Canal, costs can spiral out of control.

The 5 marine transportation stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.9%.

Luckily, marine transportation stocks have performed well with share prices up 18.2% on average since the latest earnings results.

Matson (NYSE:MATX)

Founded by a Swedish orphan, Matson (NYSE:MATX) is a provider of ocean transportation and logistics services.

Matson reported revenues of $880.1 million, down 8.5% year on year. This print exceeded analysts’ expectations by 5.1%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Matt Cox, Matson's Chairman and Chief Executive Officer, commented, "Matson's Ocean Transportation and Logistics business segments performed well in a difficult environment marked by continued uncertainty and volatility arising from tariffs and global trade. In Ocean Transportation, our operating income was lower year-over-year primarily due to lower year-over-year freight rates and container volume in our China service. The Transpacific tradelane experienced a muted peak season compared to the elevated demand levels last year due to businesses advancing cargo in the late second quarter and early third quarter ahead of U.S. tariff deadlines, which led to lower third quarter demand for our expedited services."

Interestingly, the stock is up 23.9% since reporting and currently trades at $121.48.

Is now the time to buy Matson? Access our full analysis of the earnings results here, it’s free for active Edge members.

Pangaea (NASDAQ:PANL)

Established in 1996, Pangaea Logistics (NASDAQ:PANL) specializes in global logistics and transportation services, focusing on the shipment of dry bulk cargoes.

Pangaea reported revenues of $168.7 million, up 10.2% year on year, outperforming analysts’ expectations by 5.9%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Pangaea pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 50.2% since reporting. It currently trades at $7.39.

Is now the time to buy Pangaea? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Genco (NYSE:GNK)

Headquartered in NYC, Genco (NYSE:GNK) is a shipping company that transports dry bulk cargo along worldwide maritime routes.

Genco reported revenues of $54.73 million, down 22.6% year on year, falling short of analysts’ expectations by 3.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

Genco delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 8.3% since the results and currently trades at $18.15.

Read our full analysis of Genco’s results here.

Kirby (NYSE:KEX)

Transporting goods along all U.S. coasts, Kirby (NYSE:KEX) provides inland and coastal marine transportation services.

Kirby reported revenues of $871.2 million, up 4.8% year on year. This print beat analysts’ expectations by 2.3%. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ Distribution and Services revenue estimates and an impressive beat of analysts’ revenue estimates.

The stock is up 24.6% since reporting and currently trades at $110.44.

Read our full, actionable report on Kirby here, it’s free for active Edge members.

Scorpio Tankers (NYSE:STNG)

Operating one of the youngest fleets in the industry, Scorpio Tankers (NYSE: STNG) is an international provider of marine transportation services, specializing in the shipment of refined petroleum.

Scorpio Tankers reported revenues of $232.9 million, down 9.8% year on year. This result was in line with analysts’ expectations. It was a strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

The stock is down 16% since reporting and currently trades at $52.08.

Read our full, actionable report on Scorpio Tankers here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.