Why Matson (MATX) Shares Are Surging Today - Matson (NYSE:MATX)

Matson Inc MATX shares are up Thursday morning following the release of its first quarter 2023 preliminary results.
MATX projects Q1 EPS to be $0.81 - $0.93, above the consensus of $0.76.
The company expects Q1 operating income for Ocean Transportation to be $23.0 million - $28.0 million and Logistics to be $10.0 million - $11.0 million.
In Q1, Hawaii container volume fell 0.8% Y/Y on lower eastbound volume, and Alaska container volume was down 4.8% Y/Y on a decline in export seafood volume from the Alaska-Asia Express service and lower southbound volume.
The company's China container volume fell 35.4% and Guam container volume declined 10.9% Y/Y.
MATX expects a year-over-year decrease in total operating income, reflecting lower contributions from China service.
Cash and equivalents stood at $88.0 million, with a total debt balance of $476.7 million as of March 31, 2023.
"We expect our CLX and CLX+ services in the second quarter to reflect freight demand levels below normalized conditions with lower year-over-year volumes and rates. Absent an economic 'hard landing' in the U.S., we continue to expect improved trade dynamics in the second half of 2023 as the Transpacific marketplace transitions to a more normalized level of demand," said Matt Cox, Chairman and CEO.
The company will announce Q1 2023 results on May 4, 2023.
Price Action: MATX shares are trading higher by 9.79% at $68.81 on the last check Thursday.

Why Matson Shares Are Surging Today