Latest news with #post-LunarNewYear
Yahoo
05-05-2025
- Business
- Yahoo
Matson (NYSE:MATX) Reports Sales Below Analyst Estimates In Q1 Earnings, Stock Drops
Maritime transportation company Matson (NYSE:MATX) missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 8.3% year on year to $782 million. Its GAAP profit of $2.18 per share was 3.8% below analysts' consensus estimates. Is now the time to buy Matson? Find out in our full research report. Revenue: $782 million vs analyst estimates of $818.1 million (8.3% year-on-year growth, 4.4% miss) EPS (GAAP): $2.18 vs analyst expectations of $2.27 (3.8% miss) Adjusted EBITDA: $131.7 million vs analyst estimates of $136 million (16.8% margin, 3.2% miss) Operating Margin: 10.5%, up from 5.1% in the same quarter last year Free Cash Flow was -$200,000 compared to -$18.7 million in the same quarter last year Market Capitalization: $3.72 billion Matt Cox, Matson's Chairman and Chief Executive Officer, commented, "Our first quarter financial performance was as expected with significantly higher year-over-year consolidated operating income. The year-over-year increase was primarily driven by our China service, which benefitted from the carryover of elevated freight rates from the fourth quarter of 2024 combined with healthy freight demand following a traditional post-Lunar New Year period. For our domestic tradelanes, we saw higher year-over-year volume in Hawaii and Alaska and lower year-over-year volume in Guam. In Logistics, our operating income was lower year-over-year primarily due to a lower contribution from freight forwarding and transportation brokerage, partially offset by a higher contribution from supply chain management." Founded by a Swedish orphan, Matson (NYSE:MATX) is a provider of ocean transportation and logistics services. Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, Matson's 9.8% annualized revenue growth over the last five years was solid. Its growth beat the average industrials company and shows its offerings resonate with customers. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Matson's recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 5.3% over the last two years. Matson isn't alone in its struggles as the Marine Transportation industry experienced a cyclical downturn, with many similar businesses observing lower sales at this time. This quarter, Matson's revenue grew by 8.3% year on year to $782 million, missing Wall Street's estimates. Looking ahead, sell-side analysts expect revenue to decline by 3.5% over the next 12 months. Although this projection is better than its two-year trend, it's hard to get excited about a company that is struggling with demand. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development. Matson has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 21.7%. This result was particularly impressive because of its low gross margin, which is mostly a factor of what it sells and takes huge shifts to move meaningfully. Companies have more control over their operating margins, and it's a show of well-managed operations if they're high when gross margins are low. Looking at the trend in its profitability, Matson's operating margin rose by 2.1 percentage points over the last five years, as its sales growth gave it operating leverage. In Q1, Matson generated an operating profit margin of 10.5%, up 5.4 percentage points year on year. The increase was solid, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Matson's EPS grew at an astounding 54.8% compounded annual growth rate over the last five years, higher than its 9.8% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Diving into the nuances of Matson's earnings can give us a better understanding of its performance. As we mentioned earlier, Matson's operating margin expanded by 2.1 percentage points over the last five years. On top of that, its share count shrank by 23.3%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Matson, its two-year annual EPS declines of 11.6% mark a reversal from its (seemingly) healthy five-year trend. We hope Matson can return to earnings growth in the future. In Q1, Matson reported EPS at $2.18, up from $1.04 in the same quarter last year. Despite growing year on year, this print missed analysts' estimates, but we care more about long-term EPS growth than short-term movements. Over the next 12 months, Wall Street expects Matson's full-year EPS of $15.18 to shrink by 34.3%. We struggled to find many positives in these results. Its revenue missed significantly and its EPS fell short of Wall Street's estimates. Overall, this quarter could have been better. The stock traded down 9.1% to $100 immediately after reporting. Matson's earnings report left more to be desired. Let's look forward to see if this quarter has created an opportunity to buy the stock. When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
26-03-2025
- Business
- Yahoo
Trump tariff fears plague ocean container rates
Trans-Pacific ocean container rates have eased post-Lunar New Year, despite volumes estimated to be significantly stronger than a year ago. The latest Freightos Baltic Index pegs rates to the West Coast of around $2,200 per forty-foot equivalent unit and to the East Coast of approximately $3,300 per FEU, more than 20% below 2024 lows. This trend is likely due to increased competition and less effective capacity management from new carrier alliance rollouts, as well as continued fleet growth, said Judah Levine, Freightos head of research, in a release. Asia-Mediterranean rates of around $3,500 per FEU are about 20% lower than post-Lunar New Year 2024, while Asia-Europe rates of $2,565 per FEU) are 20% below the 2024 floor despite ongoing port congestion at European hubs. Without tariff frontloading as a factor, easing demand and new carrier alliances are pushing rates down on these lanes, Levine is bracing for potential disruptions and shifts in trade patterns, he observed, with uncertainty remaining the predominant theme in global commerce. While President Donald Trump has set an April 2 deadline for new tariff announcements, confusion surrounding the White House's trade policy continues to mount. The Trump administration has indicated it will narrow the scope of reciprocal tariffs initially proposed for all U.S. trade partners with tariffs or trade barriers on U.S. exports. Only 15% of countries with a trade imbalance will face reciprocal tariffs, but these account for most U.S. imports and bulk of the trade deficit. The list of targeted countries includes China, Mexico, Canada, the nations of the European Union, as well as potential alternative sourcing partners such as India and Vietnam. Tariff levels will vary based on foreign tariff rates for U.S. exports. Levine noted that despite earlier reports of postponements, Trump stated that global duties on automotive and pharmaceutical imports would be announced soon, possibly before April 2. Additionally, an executive order signed Monday will apply 25% tariffs on top of existing tariffs to goods from any country purchasing oil from Venezuela, potentially impacting China, Singapore, Vietnam and clouding the outlook, the U.S. Trade Representative this week is also holding public hearings on proposed port call fees targeting Chinese-made vessels. American cargo owners, exporters, port labor and ocean carriers have objected, citing major threats to their businesses. Heightened fears of steep U.S. tariffs on EU alcohol imports led the U.S. Wine Trade Alliance to advise members to halt all shipments. However, overall U.S. import demand suggests shippers continue to frontload due to tariff uncertainty. This is reflected in the recent buildup of empty containers at the ports of Los Angeles and Long Beach. Find more articles by Stuart Chirls groups, businesses speak to both sides of proposed US port fees Port Authority of New York and New Jersey signs 33-year lease with APM Terminals Report: Top-secret US plans to attack Houthis accidentally shared with journalistNTSB faults Maryland in Key Bridge collapse, warns dozens of other bridges at risk The post Trump tariff fears plague ocean container rates appeared first on FreightWaves.
South China Morning Post
12-03-2025
- Entertainment
- South China Morning Post
Your Hong Kong weekend drinks guide for March 14-16
As the weather turns a corner, Hong Kong's bar scene is starting to emerge from its post-Lunar New Year hibernation. Taipei's Bar Without visits Hong Kong's The Opposites, while Mandarin Oriental celebrates art month with three art-inspired cocktails. Meanwhile, in our sister SAR, Wynn Palace overhauls Wing Lei Bar and brings Scottish mixologist Mark Lloyd to helm the concept – a perfect way to cap off any weekend trip to Macau. Thursday, March 13 Bar Without x Opposites The Opposites has partnered with Pedison Kao from Taipei's Bar Without. Photo: Handout What: The Opposites looks to ease you into the weekend courtesy of host Pedison Kao, brand director of Bar Without in Taipei, and partners Johnnie Walker, Don Julio, The Singleton and Tanqueray. Kao was the Taiwan bartending champion, placing in the top three globally in the Diageo World Class competition 2024. Bar Without offers contemporary, high-concept cocktails using ingredients such as kaoliang, tea, burnt miso, tobacco, shio koji, pineapple chips and more. Advertisement Where: The Opposites, LG/F, Hilltop Plaza, 49 Hollywood Road, Central When: 8pm-11pm Friday, March 14 Art Month sips at the Mandarin Oriental The Aubrey's Angry Girl, available throughout March to celebrate Hong Kong's art month. Photo: Handout What: With some of the year's biggest art fairs including Art Basel and Art Central just around the corner, the Mandarin Oriental is unveiling an array of dishes, menus and cocktails that dazzle in both style and flavour. The Aubrey is offering the Angry Girl Highball, which focuses on coffee-infused shochu, cacao and barley, and is based on the Angry Girl series of paintings by Yoshitomo Nara. The Chinnery's Self Portrait, available through March to celebrate Art Month. Photo: Handout Elsewhere in the MO, the Captain's Bar is serving The Comedian, which adds banana, marsala and coconut to the classic Negroni, inspired by the viral piece of the same name by Italian artist Maurizio Cattelan. At the Chinnery, the Self-Portrait pays tribute to – you guessed it – painter George Chinnery, in the form of a gin sour riff. Where: Mandarin Oriental, 5 Connaught Road Central, Central When: Advertisement The Aubrey, noon-9.30pm
