Matson reported a drop in quarterly earnings that was smaller than analysts expected as the Hawaii container ship operator revealed a 2024 outlook that reflects steady demand.
The New York-listed company, which operates in both Jones Act-protected and international transpacific trades, reported net income of $62.4m for the final quarter of 2023, down from $78m in the same period a year earlier.
But the Honolulu-headquartered outfit’s $1.78 in diluted earnings per share was higher than even the most optimistic estimate and the $1.51 consensus of three analysts polled by Yahoo Finance.
“Matson’s ocean transportation and logistics business segments performed well in the fourth quarter, capping off a solid year for both business segments,” chief executive Matt Cox said in a statement.
“Our China service experienced solid freight demand with higher year-over-year volume but lower year-over-year freight rates, which when combined with higher operating costs across all trade lanes resulted in a year-over-year decline in ocean transportation operating income.”
The company reported quarterly revenue of $789m, down from $802m in the fourth quarter of 2022.
For the full year, Matson’s net income slumped to $297m from $1.06bn.
Matson said it expects to deliver $343m in consolidated operating income this year, even with 2023.
“Currently in the transpacific marketplace, we continue to see steady US consumer demand, which we expect to lead to similar demand for Matson’s CLX and CLX+ services in 2024 as in 2023,” Cox said.
“Absent a significant change in the trajectory of the US economy, we expect trade dynamics across all our trade lanes in 2024 to be comparable to 2023 as consumer-related spending activity is expected to remain stable, leading to year-over-year growth in ocean transportation operating income.”
