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 Q1. Today, we are looking at marine transportation stocks, starting with Kirby (NYSE:KEX).
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 satisfactory Q1. As a group, revenues missed analysts’ consensus estimates by 1%.
Thankfully, share prices of the companies have been resilient as they are up 7.2% on average since the latest earnings results.
Kirby (NYSE:KEX)
Transporting goods along all U.S. coasts, Kirby (NYSE:KEX) provides inland and coastal marine transportation services.
Kirby reported revenues of $785.7 million, down 2.8% year on year. This print fell short of analysts’ expectations by 2.7%. Overall, it was a slower quarter for the company with a miss of analysts’ Distribution and Services revenue estimates and adjusted operating income in line with analysts’ estimates.
David Grzebinski, Kirby’s Chief Executive Officer, commented, “Our first quarter results reflected improved market fundamentals in marine transportation and continued strong demand for power generation in distribution and services. These positive trends were partially offset by weather and navigational challenges in marine and continued supply delays in distribution and services. Overall, our combined businesses performed well during the quarter.
Interestingly, the stock is up 13.2% since reporting and currently trades at $108.90.
Read our full report on Kirby here, it’s free.
Best Q1: 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 $204.2 million, down 47.6% year on year, outperforming analysts’ expectations by 1.7%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 11.1% since reporting. It currently trades at $41.88.
Is now the time to buy Scorpio Tankers? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Matson (NYSE:MATX)
Founded by a Swedish orphan, Matson (NYSE:MATX) is a provider of ocean transportation and logistics services.
Matson reported revenues of $782 million, up 8.3% year on year, falling short of analysts’ expectations by 4.4%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and sales volume estimates.
Matson delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 6.3% since the results and currently trades at $117.
Read our full analysis of Matson’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 $122.8 million, up 17.2% year on year. This print missed analysts’ expectations by 4.4%. Aside from that, it was a strong quarter as it logged an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Pangaea scored the fastest revenue growth among its peers. The stock is down 1.7% since reporting and currently trades at $4.35.
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 $44.35 million, down 43.9% year on year. This number surpassed analysts’ expectations by 4.8%. Overall, it was a strong quarter as it also put up a decent beat of analysts’ adjusted operating income estimates.
Genco achieved the biggest analyst estimates beat among its peers. The stock is up 6.9% since reporting and currently trades at $14.39.
Read our full, actionable report on Genco here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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