Matson (NYSE:MATX) Releases Earnings Results, Beats Expectations By $0.48 EPS

Key Points

• Matson exceeded earnings expectations, reporting quarterly EPS of $4.27 versus the consensus estimate of $3.79, a $0.48 beat. The company posted a 12.92% net margin and 15.90% return on equity.
• Shares rose to $207.44 during Monday trading, giving Matson a market capitalization of approximately $6.28 billion. The stock remains below its one-year high of $230.74.
• Matson increased its quarterly dividend to $0.38 per share from $0.36, representing an annualized dividend of $1.52 and a 0.7% yield. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $203.33.

Matson (NYSE:MATX - Get Free Report) posted its quarterly earnings data on Monday. The shipping company reported $4.27 earnings per share for the quarter, topping the consensus estimate of $3.79 by $0.48, Zacks reports. Matson had a net margin of 12.92% and a return on equity of 15.90%.

Matson Price Performance

Shares of MATX traded up $4.85 during trading hours on Monday, hitting $207.44. 328,496 shares of the company were exchanged, compared to its average volume of 288,596. The company has a market capitalization of $6.28 billion, a PE ratio of 15.24 and a beta of 1.27. The company has a debt-to-equity ratio of 0.11, a current ratio of 0.82 and a quick ratio of 0.82. The firm has a fifty day simple moving average of $199.17 and a 200-day simple moving average of $177.33. Matson has a one year low of $86.97 and a one year high of $230.74.

Matson Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Thursday, August 6th will be given a dividend of $0.38 per share. This is a boost from Matson's previous quarterly dividend of $0.36. The ex-dividend date is Thursday, August 6th. This represents a $1.52 dividend on an annualized basis and a dividend yield of 0.7%. Matson's payout ratio is currently 10.58%.

Insider Activity at Matson

In other news, SVP Christopher A. Scott sold 1,520 shares of the business's stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $181.05, for a total transaction of $275,196.00. Following the sale, the senior vice president owned 9,708 shares in the company, valued at $1,757,633.40. The trade was a 13.54% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Peter T. Heilmann sold 7,173 shares of the company's stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $180.19, for a total value of $1,292,502.87. Following the transaction, the executive vice president directly owned 25,506 shares in the company, valued at $4,595,926.14. The trade was a 21.95% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 23,963 shares of company stock valued at $4,349,268 over the last ninety days. Company insiders own 2.51% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Summit Global Investments increased its position in Matson by 23.8% in the 4th quarter. Summit Global Investments now owns 11,867 shares of the shipping company's stock worth $1,466,000 after purchasing an additional 2,278 shares during the last quarter. XTX Topco Ltd acquired a new stake in shares of Matson during the 4th quarter valued at about $760,000. Uniplan Investment Counsel Inc. bought a new stake in shares of Matson in the 4th quarter valued at approximately $201,000. Voloridge Investment Management LLC bought a new stake in shares of Matson in the 4th quarter valued at approximately $1,725,000. Finally, SummitTX Capital L.P. acquired a new position in Matson in the fourth quarter worth approximately $6,303,000. 84.76% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of analysts have recently weighed in on MATX shares. JPMorgan Chase & Co. began coverage on shares of Matson in a research note on Monday, April 27th. They issued an "overweight" rating and a $230.00 price target for the company. Weiss Ratings reissued a "hold (c)" rating on shares of Matson in a report on Friday, May 29th. Finally, Zacks Research upgraded Matson to a "hold" rating in a research report on Wednesday, April 29th. Three analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, Matson currently has a consensus rating of "Moderate Buy" and an average target price of $203.33.

Matson Company Profile

Matson, Inc NYSE: MATX is a U.S.-based provider of ocean transportation and supply chain logistics services with a focus on Pacific trade lanes. The company operates a fleet of container ships that regularly service Hawaii, Alaska, Guam, Micronesia and other Pacific islands, as well as mainland U.S. ports. Matson's ocean transportation segment offers scheduled liner services, expedited shipping options and specialized project cargo handling for industries ranging from retail to heavy machinery.

In addition to its core liner operations, Matson offers ocean transportation services between Asia and the U.S.

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