Latest news with #ZIMIntegratedShippingServices
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2 days ago
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Is ZIM Stock's Cheap Valuation Reason Enough to Bet on it?
ZIM Integrated Shipping ZIM shares are one of the cheaper ones in the Zacks Transportation-Shipping industry, with a Value Score of A. ZIM stock is trading at a significant discount, with a forward 12-month P/S of 0.32X compared with the industry's 1.95X. ZIM is also cheaper than other shipping stocks like Star Bulk Carriers SBLK and Euroseas ESEA. Star Bulk Carriers and Euroseas have a Value Score of B each. Image Source: Zacks Investment Research ZIM's cheap valuation is attractive for investors. However, is it worth buying at current prices? Let's dig deep to find out. ZIM has an asset-light model, which means that the focus is more on leasing rather than owning vessels. This allows it to adjust capacity rapidly in response to market changes. ZIM's focus on niche markets and high-margin trade routes helps it avoid crowded, low-margin segments, thereby maintaining strong pricing power. This, too, aids profitability. The shipping company's operational efficiency is being aided by investments in digitalization and innovative technologies. ZIM's shareholder-friendly approach reflects its financial prosperity. The shipping company's high dividend yield is a huge positive for income-seeking investors. This highlights confidence in its cash flow and prospects. In the December quarter, ZIM's board declared a regular dividend of approximately $382 million or $3.17 per ordinary share. In the first quarter of 2025, ZIM's board of directors declared a regular cash dividend of approximately $89 million, or 74 cents per share, reflecting approximately 30% of the quarter's net income. In its recently released first-quarter 2025 results, ZIM continued its streak of beating earnings expectations, showing resilience despite tough conditions. In fact, the shipping stock outpaced the Zacks Consensus Estimate for earnings in each of the last four quarters, with the average being 34.5%. ZIM Integrated Shipping Services price-eps-surprise | ZIM Integrated Shipping Services Quote Tariff Tensions: The ongoing trade tension does not bode well for ZIM, as the company has significant exposure to both China and the United States. Transpacific volumes have been suffering due to the trade woes hurting ZIM. Agreed that tariff woes are showing signs of easing, with the United States and China announcing a 90-day suspension on mutual tariffs; however, in the absence of a long-term trade deal, the scenario will continue to be uncertain. Even on the first-quarter conference call, management sounded cautious regarding transpacific trade during the remainder of 2025 in the absence of a longer-term agreement. Earnings Estimates Unimpressive for ZIM: The trade tensions are primarily responsible for the year-over-year decline in the 2025 and 2026 earnings estimates of this shipping stock. Image Source: Zacks Investment Research High Debt Load: We are concerned about ZIM's high debt levels. Long-term debt more than doubled to $4.7 billion at 2024-end from 2019. Image Source: Zacks Investment Research Unimpressive Price Performance of ZIM Stock: Shares of ZIM have not had a good run on the bourses so far this year, declining 19.6% compared with the industry's 4.8% fall. Star Bulk Carriers and Euroseas have performed much better year to date. Image Source: Zacks Investment Research There is no doubt that the stock is attractively valued. The company's shareholder-friendly initiatives also add to its appeal. However, the tariff-induced economic uncertainty clouds its near-term outlook. High debts also do not help matters. Given the current uncertainty, it is not at all advisable to buy this Zacks Rank #3 (Hold) stock. Investors should monitor the company's developments closely for an appropriate entry point. For those who already own the stock, it will be prudent to stay invested. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Star Bulk Carriers Corp. (SBLK) : Free Stock Analysis Report Euroseas Ltd. (ESEA) : Free Stock Analysis Report ZIM Integrated Shipping Services Ltd. (ZIM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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20-05-2025
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ZIM Integrated Shipping Services (NYSE:ZIM) Reports Q1 Net Income of US$295 Million
ZIM Integrated Shipping Services recently announced strong earnings for Q1 2025, with net income rising significantly to $295 million from $90 million the previous year. This impressive financial performance is likely a key factor behind the company's 40% share price increase over the last month, a far steeper rise than the 1.6% uptick observed in the broader market. While the market itself has experienced steady growth over the past year, ZIM's substantial earnings increase and proactive communication strategy have added notable weight to its stock's impressive performance in the short term. We've identified 3 warning signs with ZIM Integrated Shipping Services (at least 1 which shouldn't be ignored) and understanding the impact should be part of your investment process. This technology could replace computers: discover the 22 stocks are working to make quantum computing a reality. ZIM Integrated Shipping Services has experienced a substantial share price increase of 40% in the past month, attributing much to its strong Q1 2025 earnings. However, longer-term performance reflects a dramatic 56.39% total return over the past year, incorporating both share price and dividend returns. Despite ZIM's impressive short-term gains, it's important to note that its one-year gains contrast sharply with the broader US Shipping industry, which saw a downturn of 17.3% during the same period. The recent news surrounding increased earnings could impact ZIM's revenue and earnings forecasts, especially as analysts expect a significant decrease in revenue (-24.5% per year) over the next three years. Projected new port charges and the possibility of trade wars introduce risks that might offset advancements in cost efficiency, thereby affecting future earnings. The share price, currently at US$14.72, is slightly above the analyst consensus price target of US$14.25, suggesting a potential stabilization in its market value. These factors, combined with a forecast decline in earnings growth, emphasize the need for investors to evaluate the company's ability to manage incoming challenges effectively. Understand ZIM Integrated Shipping Services' track record by examining our performance history report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:ZIM. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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19-05-2025
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ZIM Integrated Shipping Services (ZIM) Q1 Earnings and Revenues Top Estimates
ZIM Integrated Shipping Services (ZIM) came out with quarterly earnings of $2.45 per share, beating the Zacks Consensus Estimate of $1.89 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 29.63%. A quarter ago, it was expected that this container shipping company would post earnings of $3.47 per share when it actually produced earnings of $4.66, delivering a surprise of 34.29%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. ZIM , which belongs to the Zacks Transportation - Shipping industry, posted revenues of $2.01 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 15.74%. This compares to year-ago revenues of $1.56 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. ZIM shares have lost about 14.6% since the beginning of the year versus the S&P 500's gain of 1.3%. While ZIM has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for ZIM: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.71 on $1.68 billion in revenues for the coming quarter and $0.86 on $6.53 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Shipping is currently in the bottom 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Cadeler (CDLR), another stock in the same industry, has yet to report results for the quarter ended March 2025. This offshore wind farm transportation and installation contractor is expected to post quarterly earnings of $0.41 per share in its upcoming report, which represents a year-over-year change of +257.7%. The consensus EPS estimate for the quarter has been revised 3.2% lower over the last 30 days to the current level. Cadeler's revenues are expected to be $99.34 million, up 379.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ZIM Integrated Shipping Services Ltd. (ZIM) : Free Stock Analysis Report Cadeler A/S Sponsored ADR (CDLR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
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19-05-2025
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ZIM Integrated Shipping Services (ZIM) Reports Next Week: Wall Street Expects Earnings Growth
Wall Street expects a year-over-year increase in earnings on higher revenues when ZIM Integrated Shipping Services (ZIM) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on May 19, 2025, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This container shipping company is expected to post quarterly earnings of $1.66 per share in its upcoming report, which represents a year-over-year change of +121.3%. Revenues are expected to be $1.73 billion, up 11% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 17.93% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For ZIM, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -10.36%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that ZIM will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that ZIM would post earnings of $3.47 per share when it actually produced earnings of $4.66, delivering a surprise of +34.29%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. ZIM doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Transportation - Shipping industry, Star Bulk Carriers (SBLK), is soon expected to post loss of $0.23 per share for the quarter ended March 2025. This estimate indicates a year-over-year change of -126.4%. Revenues for the quarter are expected to be $210.53 million, down 18.8% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Star Bulk Carriers has been revised 60% up to the current level. Nevertheless, the company now has an Earnings ESP of 0.00%, reflecting an equal Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Star Bulk Carriers will beat the consensus EPS estimate. The company could not beat consensus EPS estimates in any of the last four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ZIM Integrated Shipping Services Ltd. (ZIM) : Free Stock Analysis Report Star Bulk Carriers Corp. (SBLK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
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14-05-2025
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Should You Buy, Hold or Sell ZIM Stock Ahead of Q1 Earnings?
ZIM Integrated Shipping Services ZIM is set to report first-quarter 2025 results on May 19, before the market opens. The EPS estimate for the to-be-reported quarter has been revised 8.3% downward to $1.89 per share over the past 60 days. The bottom-line projection indicates a year-over-year surge of 152%. The Zacks Consensus Estimate for quarterly revenues, currently pegged at $1.73 billion, suggests a year-over-year increase of 11%. Image Source: Zacks Investment Research For 2025, the Zacks Consensus Estimate for ZIM's revenues is pegged at $6.5 billion, implying a contraction of 22.5% year over year. The consensus mark for 2025 EPS is pegged at 85 cents, implying a decline of 95.2% year over year. In the trailing four quarters, this shipping company surpassed EPS estimates on three of the four quarters (missing the mark on the other occasion), with the average earnings surprise being 19.3%. ZIM Integrated Shipping Services price-eps-surprise | ZIM Integrated Shipping Services Quote Our proven model does not predict an earnings beat for ZIM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. ZIM has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. (See the Zacks Earnings Calendar to stay ahead of market-making news.) You can see the complete list of today's Zacks #1 Rank stocks here. We expect the company's bottom-line performance to have been hit by escalated voyage operating costs. High labor costs are also likely to have been a spoilsport. Geopolitical risks pose operational challenges and might hurt results. An update on the tariff concerns is also expected on the fourth-quarter conference call. We expect an update from the management on the current tariff-related scenario. On a brighter note, continued fleet expansion initiatives are likely to have driven the company's performance. Reduced container availability due to Red Sea tensions is expected to have raised freight costs. This is anticipated to have aided the quarterly performance of ZIM, which provides services to East Mediterranean and Israeli ports. Revenues and carried volumes are expected to have surged due to the disruptions. Lower capacity is anticipated to have boosted earnings. Over the past year, shares of ZIM have lost 8.5%, outperforming the Zacks Transportation - Shipping industry and the Zacks Transportation sector. It has also performed better than fellow industry players Frontline FRO and Seanergy Maritime Holdings SHIP in the same timeframe. Image Source: Zacks Investment Research From a valuation perspective, ZIM is trading relatively cheap. Going by its price/sales ratio, the company is trading at a forward sales multiple of 0.32, way below the industry's 1.95. The company has a Value Score of A. ZIM's reading is lower than that of other shipping players like Frontline and Seanergy Maritime Holdings. While Frontline has a Value Score of B, Seanergy Maritime Holdings has a Value Score of A. Image Source: Zacks Investment Research Agreed that ZIM has quite a few factors working in its favor, including its shareholder-friendly approach and attractive valuation. However, the ongoing trade tension does not bode well for ZIM, as the company has significant exposure to both China and the United States. The shipping industry, of which ZIM is an integral part, is being hit by the ongoing trade tensions globally. The industry is responsible for a high majority of goods involved in world trade. Trade-related tensions have the potential to slow down goods transportation. Agreed that tariff woes are showing signs of easing, but in the absence of long-term trade deals, the scenario continues to be uncertain. We can safely conclude that investors should refrain from rushing to buy ZIM, which is facing quite a few challenges, ahead of its earnings release on May 19. Instead, they should monitor the developments of the stock closely for a more appropriate entry point, as an erroneous and hasty decision could affect portfolio gains. ZIM's current Zacks Rank supports our thesis. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Frontline PLC (FRO) : Free Stock Analysis Report Seanergy Maritime Holdings Corp (SHIP) : Free Stock Analysis Report ZIM Integrated Shipping Services Ltd. (ZIM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
