Matson Sees FY24 Ocean Transportation Operating Income To Be Higher Than $294.8M Achieved In 2023 And Higher Then Previous Outlook
Portfolio Pulse from Benzinga Newsdesk
Matson expects FY24 Ocean Transportation operating income to exceed $294.8M from 2023, with a moderate increase in Q2 2024. Logistics operating income for Q1 2024 was $9.3M, down from 2023, with a forecasted decrease for FY24 due to market softness. Consolidated operating income for FY24 is anticipated to be slightly higher than $342.8M from 2023, with depreciation and amortization at $180M. Interest income is expected to rise to $45M, partly due to a $10.2M federal tax refund. Interest expense is projected at $8M, with other income at $7M. The effective tax rate for FY24 is estimated at 22%. Capital expenditures for FY24 are expected between $110M-$120M, with additional investments in new vessel construction and LNG installations.
April 30, 2024 | 8:09 pm
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POSITIVE IMPACT
Matson anticipates higher FY24 operating income in Ocean Transportation and a modest increase in consolidated operating income. Logistics segment faces a downturn, but overall financial health appears robust with strategic capital expenditures.
The positive outlook for Matson's Ocean Transportation operating income and the overall increase in consolidated operating income suggest a strong financial performance in FY24. Despite the downturn in the Logistics segment, the company's strategic capital expenditures in new vessel construction and LNG installations indicate a focus on long-term growth and efficiency improvements. The expected increase in interest income and controlled interest expenses further support a positive short-term impact on Matson's stock.
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