Yahoo Finance Marine Transportation Stocks Q1 Recap: Benchmarking Genco (NYSE:GNK)
As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the marine transportation industry, including Genco (NYSE:GNK) 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 an ok Q1; on average, revenues missed analyst consensus estimates by 1.4%. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, but marine transportation stocks have shown resilience, with share prices up 6.2% on average since the previous earnings results.
Weakest Q1: 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 $79.09 million, up 42.5% year on year, in line with analysts' expectations. Overall, it was a weaker quarter for the company with a miss of analysts' earnings estimates.
John C. Wobensmith, Chief Executive Officer, commented, “During the first quarter, we further executed our value strategy, which is aimed at driving returns through the drybulk cycles and creating sustained long-term shareholder value. Our first quarter dividend increased quarter-over-quarter and represents our 19th consecutive dividend. Notably, dividends over this period have now increased to $5.575 per share in total, or 25% of our stock price. We also continued to voluntarily pay down debt during the quarter and have lowered our debt by 62% since 2021, while reducing our cash flow breakeven rate to the lowest in the peer group. Finally, we continued to take steps to renew the fleet, closing on the sales of three older Capesize vessels scheduled for special survey in 2024.”
Genco achieved the fastest revenue growth of the whole group. The stock is down 8.5% since reporting and currently trades at $20.73.
Read our full report on Genco here, it's free.
Best Q1: Kirby (NYSE:KEX)
Spun off from Kirby Industries, Kirby Corporation (NYSE:KEX) operates as a maritime transportation and services provider.
Kirby reported revenues of $808 million, up 7.7% year on year, outperforming analysts' expectations by 2.5%. It was a very strong quarter for the company with an impressive beat of analysts' earnings estimates and a decent beat of analysts' Marine Transportation revenue estimates.
Kirby achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 18.2% since reporting. It currently trades at $119.44.
Is now the time to buy Kirby? Access our full analysis of the earnings results here, it's free.
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 $104.7 million, down 7.9% year on year, falling short of analysts' expectations by 10.8%. It was a mixed quarter for the company with an impressive beat of analysts' earnings estimates.
Pangaea posted the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 3.3% since the results and currently trades at $7.52.
Read our full analysis of Pangaea's results here.
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 $389.8 million, up 3.3% year on year, surpassing analysts' expectations by 2.1%. Revenue aside, it was a very strong quarter for the company with a decent beat of analysts' earnings estimates.
The stock is up 3.4% since reporting and currently trades at $78.
Read our full, actionable report on Scorpio Tankers here, it's free.
Matson (NYSE:MATX)
Founded by a Swedish orphan, Matson (NYSE:MATX) is a provider of ocean transportation and logistics services.
Matson reported revenues of $722.1 million, up 2.5% year on year, in line with analysts' expectations. More broadly, it was a good quarter for the company with a decent beat of analysts' earnings estimates.
The stock is up 13.9% since reporting and currently trades at $122.55.
Read our full, actionable report on Matson here, it's free.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
