As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the marine transportation industry, including Scorpio Tankers (NYSE: STNG) and its peers.
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 8.4% on average since the latest earnings results.
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. This print exceeded analysts’ expectations by 1.7%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Scorpio Tankers delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 12% since reporting and currently trades at $42.24.
Is now the time to buy Scorpio Tankers? Access our full analysis of the earnings results 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, outperforming analysts’ expectations by 4.8%. The business had a strong quarter with a decent beat of analysts’ adjusted operating income estimates.
Genco scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 8.2% since reporting. It currently trades at $14.56.
Is now the time to buy Genco? 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 6.9% since the results and currently trades at $117.62.
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 number lagged analysts' expectations by 4.4%. Zooming out, it was actually a strong quarter as it logged an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Pangaea achieved the fastest revenue growth among its peers. The stock is up 2.4% since reporting and currently trades at $4.53.
Read our full, actionable report on Pangaea 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 $785.7 million, down 2.8% year on year. This print came in 2.7% below analysts' expectations. It was a slower quarter as it also recorded a miss of analysts’ Distribution and Services revenue estimates and adjusted operating income in line with analysts’ estimates.
The stock is up 12.8% since reporting and currently trades at $108.53.
Read our full, actionable report on Kirby here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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