The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how marine transportation stocks fared in Q4, starting with Pangaea (NASDAQ:PANL).
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 9.8% since the latest earnings results.
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 print exceeded analysts’ expectations by 15.6%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates.
"Our fourth quarter performance was a strong finish to a transformational year for Pangaea, one in which our strong base of long-term contracts and premium-rate model supported a greater than 18% year-over-year increase in Adjusted EBITDA, despite pronounced softness in the broader dry bulk market," stated Mark Filanowski, Chief Executive Officer of Pangaea Logistics Solutions.
Pangaea achieved the biggest analyst estimates beat of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 2.3% since reporting and currently trades at $4.75.
Is now the time to buy Pangaea? Access our full analysis of the earnings results 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 delivered the fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 10.3% since reporting. It currently trades at $126.81.
Is now the time to buy Matson? Access our full analysis of the earnings results here, it’s free.
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, falling short of analysts’ expectations by 3.6%. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Scorpio Tankers delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 22% since the results and currently trades at $37.35.
Read our full analysis of Scorpio Tankers’s results here.
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 number was in line with analysts’ expectations. Aside from that, it was a mixed quarter as it also produced a decent beat of analysts’ EBITDA estimates.
The stock is down 8.6% since reporting and currently trades at $13.36.
Read our full, actionable report on Genco 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. This result met analysts’ expectations. Zooming out, it was a slower quarter as it logged a miss of analysts’ adjusted operating income estimates.
The stock is down 5.8% since reporting and currently trades at $100.31.
Read our full, actionable report on Kirby here, it’s free.
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