As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at marine transportation stocks, starting with Scorpio Tankers (NYSE:STNG).
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 mixed Q4. As a group, revenues beat analysts’ consensus estimates by 3.3%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 20.3% since the latest earnings results.
Weakest Q4: 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 $192.1 million, down 42.5% year on year. This print fell short of analysts’ expectations by 3.6%. Overall, it was a softer quarter for the company with a significant miss of analysts’ adjusted operating income estimates.
Scorpio Tankers delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 31.2% since reporting and currently trades at $32.96.
Read our full report on Scorpio Tankers here, it’s free.
Best Q4: Matson (NYSE:MATX)
Founded by a Swedish orphan, Matson (NYSE:MATX) is a provider of ocean transportation and logistics services.
Matson reported revenues of $890.3 million, up 12.9% year on year, outperforming analysts’ expectations by 4.5%. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates.
Matson achieved the fastest revenue growth among its peers. The stock is down 27.3% since reporting. It currently trades at $102.73.
Is now the time to buy Matson? Access our full analysis of the earnings results here, it’s free.
Kirby (NYSE:KEX)
Transporting goods along all U.S. coasts, Kirby (NYSE:KEX) provides inland and coastal marine transportation services.
Kirby reported revenues of $802.3 million, flat year on year, in line with analysts’ expectations. It was a slower quarter as it posted a miss of analysts’ adjusted operating income estimates.
As expected, the stock is down 12% since the results and currently trades at $93.73.
Read our full analysis of Kirby’s results here.
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 $147.2 million, up 11.6% year on year. This number surpassed analysts’ expectations by 15.6%. It was a strong quarter as it also put up a solid beat of analysts’ EBITDA estimates.
Pangaea scored the biggest analyst estimates beat among its peers. The stock is down 12.8% since reporting and currently trades at $4.24.
Read our full, actionable report on Pangaea here, it’s free.
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 $67.53 million, down 5.4% year on year. This print was in line with analysts’ expectations. Zooming out, it was a mixed quarter as it also produced a decent beat of analysts’ EBITDA estimates but a miss of analysts’ EPS estimates.
The stock is down 18% since reporting and currently trades at $11.99.
Read our full, actionable report on Genco here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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