Wrapping up Q2 earnings, we look at the numbers and key takeaways for the marine transportation stocks, including Kirby (NYSE:KEX) 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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.7%.
Inflation progressed towards the Fed’s 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation, and while some marine transportation stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.6% since the latest earnings results.
Kirby (NYSE:KEX) Transporting goods along all three U.S. coasts, Kirby (NYSE:KEX) provides inland and coastal marine transportation services.
Kirby reported revenues of $824.4 million, up 6.1% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with a decent beat of analysts’ earnings estimates.
David Grzebinski, Kirby’s Chief Executive Officer, commented, “Our second quarter results reflected steady fundamentals in both marine transportation and distribution and services, with some modest weather and navigational challenges for marine and continued supply constraints in distribution & services. These challenges were offset by good execution. Solid demand in both marine and distribution and services continued during the quarter and led to strong financial performance.
Kirby delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Unsurprisingly, the stock is down 5.7% since reporting and currently trades at $115.81.
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Best Q2: 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 $131.5 million, up 11.4% year on year, outperforming analysts’ expectations by 17%. It was an incredible quarter for the company with an impressive beat of analysts’ earnings estimates.
Pangaea pulled off the biggest analyst estimates beat among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $6.60.
Weakest Q2: 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 $76.3 million, up 25.2% year on year, exceeding analysts’ expectations by 2.1%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.
As expected, the stock is down 2.9% since the results and currently trades at $17.34.
Matson (NYSE:MATX) Founded by a Swedish orphan, Matson (NYSE:MATX) is a provider of ocean transportation and logistics services.
Matson reported revenues of $847.4 million, up 9.6% year on year, surpassing analysts’ expectations by 3.7%. More broadly, it was an exceptional quarter for the company with a decent beat of analysts’ earnings estimates.
The stock is up 4.1% since reporting and currently trades at $133.73.
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 $373.5 million, up 14% year on year, in line with analysts’ expectations. Taking a step back, it was an ok quarter for the company with a narrow beat of analysts’ earnings estimates.
The stock is down 4.4% since reporting and currently trades at $71.18.
This content was originally published on Stock Story
