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NEW YORK - Matson , Inc. (NYSE:MATX) reported fourth-quarter earnings that surpassed analyst estimates, driven by robust performance in its China service. The company’s stock jumped 3.9% following the announcement.
The Honolulu-based shipping company posted adjusted earnings per share of $3.80 for Q4 2024, significantly beating the analyst consensus of $2.45. Revenue for the quarter came in at $890.3 million, topping expectations of $840.29 million.
Matson’s China service was the primary driver of the year-over-year increase in Ocean Transportation and consolidated operating income. The company saw seasonally stronger freight demand with significantly higher YoY freight rates for its CLX and MAX services.
"Matson had a very strong fourth quarter that exceeded our expectations, capping off a strong year," said Matt Cox, Chairman and Chief Executive Officer. "For the quarter, our China service was the primary driver of the year-over-year increase in Ocean Transportation and consolidated operating income."
The company’s container volume in the China service increased 7.2% YoY in Q4 due to seasonally stronger freight demand. However, container volume in the Hawaii service decreased 1.7% YoY, primarily due to lower general demand.
Looking ahead, Matson expects elevated freight rates in its China service to continue into the first quarter of 2025. The company anticipates its Q1 2025 consolidated operating income to be meaningfully higher than the level achieved in the same period last year.
For the full year 2025, Matson’s outlook depends largely on the timing of trade flow normalization in the Red Sea and other factors. The company expects its 2025 consolidated operating income to be moderately lower than 2024 levels if Red Sea trade conditions normalize by mid-year, but potentially approaching 2024 levels if disruptions persist through year-end.
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