Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of ocean transportation and logistics company Matson (NYSE:MATX) climbed 10% today after its quarterly results and guidance topped Wall Street expectations.
So what: Matson shares have slumped in recent months on concerns over its exposure to the weak global economy, but a strong third quarter -- EPS of $0.45 on revenue of $401.4 million versus $0.21 and $380.6 million in the year-ago period -- suggests that those worries are overblown. While rising dry-docking expenses weighed on margins, continued volume and rate strength in China and strong Guam volume are giving investors plenty of good vibes over its growth going forward.
Now what: Thanks to those demand tailwinds, management expects its fourth-quarter Ocean Transportation operating income to grow significantly over 2011 and possibly even double. "Our balance sheet strength and strong cash flow generation support a strong dividend while providing ample capacity for future investments in our people, our businesses and new markets," CEO Matt Cox said in a statement. With management backing up that statement by also reducing its debt load by $44 million during the quarter, conservative income-oriented Fools might want to take a closer look.
Interested in more info on Matson? Add it to your watchlist.
Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
Why Nike, Deere, and Matson Slumped Today
These stocks helped put downward pressure on the market. Find out why.
Here's Why Shares of Matson, Inc. Are Plunging Today
The Pacific-focused shipping company is facing some competition for one of its most lucrative trading routes.
Why Shares of Matson, Inc. Plunged 31% Today
The shipping industry is hitting some headwinds in 2016.