Winners And Losers Of Q4: Genco (NYSE:GNK) Vs The Rest Of The Marine Transportation Stocks
April 16, 2025
Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at 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 a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 3.3%.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 20% since the latest earnings results.
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 $67.53 million, down 5.4% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ EBITDA estimates but a miss of analysts’ EPS estimates.
John C. Wobensmith, Chief Executive Officer, commented, “During 2024, we grew earnings, while continuing to prioritize the three pillars of Genco’s comprehensive value strategy namely dividends, deleveraging and growth. Consistent with our commitment to returning significant capital to shareholders, we took steps to enhance our dividend policy aimed at increasing cash available for distribution on a quarterly basis. We are pleased to advance our track record of dividends to shareholders through market cycles, as Genco has now declared 22 consecutive quarterly dividends, representing $6.615 per share, or 45% of our stock price.
The stock is down 16.3% since reporting and currently trades at $12.23.
Founded by a Swedish orphan, Matson (NYSE:MATX) is a provider of ocean transportation and logistics services.
Matson reported revenues of $890.3 million, up 12.9% year on year, outperforming analysts’ expectations by 4.5%. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates.
Matson pulled off the fastest revenue growth among its peers. The results as the stock is down 29.6% since reporting. It currently trades at $99.56.
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 $192.1 million, down 42.5% year on year, falling short of analysts’ expectations by 3.6%. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Scorpio Tankers delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 29% since the results and currently trades at $33.99.
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 $147.2 million, up 11.6% year on year. This print beat analysts’ expectations by 15.6%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates.
Pangaea pulled off the biggest analyst estimates beat among its peers. The stock is down 14% since reporting and currently trades at $4.18.
Transporting goods along all U.S. coasts, Kirby (NYSE:KEX) provides inland and coastal marine transportation services.
Kirby reported revenues of $802.3 million, flat year on year. This result was in line with analysts’ expectations. More broadly, it was a slower quarter as it recorded a miss of analysts’ adjusted operating income estimates.
The stock is down 10.9% since reporting and currently trades at $94.96.
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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