Investors might want to bet on ZIM Integrated Shipping Services (ZIM) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracke ...

Most investors have been worried about the state of the shipping industry. Transportation stocks have underperformed the broader market ever since bottlenecks and supply chain issues caused by the COVID-19 pandemic created a difficult business environment for those who operate in the space. Today, a mid-cap shipping stock shows that the industry is actually starting to look up now. ZIM Integrated Shipping Services Today ZIM ZIM Integrated Shipping Services $22.84 +0.59 (+2.65%) 52-Week Range $6.39 ▼ $23.82 ...

Suphanat Khumsap ZIM Integrated Shipping (NYSE:ZIM) was soaring on Monday after releasing strong earnings results and an even stronger bump to full-year guidance. The disruptions in the Red Sea have led to a surge in freight rates, which in turn have sparked a dramatic turnaround in ZIM's fundamental results. Management has declared a large bump to the quarterly dividend, and the earnings yield over the coming quarters looks significant. However, I urge caution as investors mustn't forget that this remains ...

Daniel Wright/iStock Editorial via Getty Images Note: I have covered ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) previously, so investors should view this as an update to my earlier articles on the company. On Monday, Israel-based liner company ZIM Integrated Shipping Services Ltd. or "ZIM" reported Q2/2024 results well ahead of consensus expectations due to a favorable combination of higher volumes, increased freight rates and lower average costs. ZIM Integrated Shipping - Key Financial Metrics | --- ...

The container ship operator benefited from a strong pricing environment in the second quarter. Trouble on the high seas is causing shipping rates to soar, which in turn is helping Zim Integrated Shipping Services (ZIM 22.11%) deliver for investors. The container shipping company's shares jumped sharply at the open Monday and were up by about 22% as of 10:56 a.m. ET after the company released quarterly results that easily topped expectations. A favorable current Zim incurs high fixed costs to buy and maintai ...

Financial Data and Key Metrics Changes - ZIM reported a net income of $373 million and revenue of $1.9 billion for Q2 2024, reflecting strong performance [3] - Adjusted EBITDA was $766 million with an adjusted EBITDA margin of 40%, while adjusted EBIT was $488 million with an adjusted EBIT margin of 25% [4][17] - Total liquidity at the end of the quarter was $2.3 billion, and free cash flow for Q2 was $712 million, significantly up from $321 million in Q2 2023 [4][14] Business Line Data and Key Metrics Changes - Carried volume reached a record 952,000 TEU in Q2, representing an 11.7% increase year-over-year and a 13% increase from Q1 2024 [4][9] - Revenue from non-containerized cargo totaled $128 million, slightly down from $136 million in Q2 2023 [14] - The average freight rate per TEU was $1,674, a 40% year-over-year increase and a 15% increase from the prior quarter [13] Market Data and Key Metrics Changes - Transpacific trade volume grew by 29% year-over-year, while Latin America trade volume surged by 90% [9][10][18] - The overall market growth for container shipping was 6%, indicating ZIM's performance outpaced the market [13] Company Strategy and Development Direction - ZIM is focused on fleet renewal and modernization, with 38 of 46 new-build vessels already added to the fleet [7][15] - The company aims to maintain flexibility in fleet size to adapt to market conditions and has shifted its commercial strategy to increase spot exposure in the Transpacific trade [9][21] - Investments in disruptive technologies are being pursued, including a climate-related technology and an innovative e-commerce solution [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing supply constraints and strong demand are putting upward pressure on spot rates, but long-term dynamics suggest supply growth will outpace demand [6][22] - The outlook for the second half of 2024 has improved, with expectations for stronger performance compared to the first half [5][20] - Concerns about the Red Sea crisis and its impact on supply chains were highlighted, with management indicating that the situation remains fluid [22][25] Other Important Information - A dividend of $0.93 per share was declared, totaling $112 million based on Q2 results, reflecting the company's commitment to returning capital to shareholders [5] - The company is not expected to incur significant tax charges in 2024 due to carryforward tax losses from 2023 [36] Q&A Session Summary Question: Future volume expectations and baseline for ZIM - Management expressed hope that the current volume level of 952,000 TEUs could be a new baseline, with expectations to reach 1 million TEUs per quarter in the near future [27][28] Question: Uses of excess cash flow - The company plans to strengthen its balance sheet and continue capital allocation towards assets, while also returning capital to shareholders through dividends [29][30] Question: Dividend policy and potential for a 50% payout - Management indicated that the decision on a potential true-up to a 50% payout will depend on market conditions and performance throughout 2024 [31][32] Question: Tax rate and future tax charges - Management does not expect significant tax charges in 2024 due to the ability to utilize tax losses from 2023 [36] Question: Fleet renewal strategy and vessel rechartering - The strategy involves redelivering smaller, less cost-effective vessels while assessing market conditions for potential rechartering of vessels coming up for renewal [37][39] Question: Container demand expectations for Q3 and Q4 - Management believes that overall demand growth for 2024 will be better than initially planned, but remains cautious about inventory levels in the US and their impact on demand [44][45]

ZIM Integrated Shipping Services (ZIM) came out with quarterly earnings of $3.08 per share, beating the Zacks Consensus Estimate of $2.07 per share. This compares to loss of $1.37 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 48.79%. A quarter ago, it was expected that this container shipping company would post earnings of $1.09 per share when it actually produced earnings of $0.75, delivering a surprise of -31.19%. Over th ...

Investor Presentation Q2 2024 FINANCIAL RESULTS August 19, 2024 Disclaimer Forward-Looking Statements The following information contains, or may be deemed to contain forward-looking statements (as defined in the U.S. Private Securities Litigation Reform Act of 1995). In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of these terms and oth ...

7 Income from voyages and related services 8 Operating expenses and cost of services | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------------------------|-----------|--------------------|--------------------------------------|-----------------------------------|------------------|---------| | | Level 1 | 2024 \nLevel 3 | Balance at \nUS $ in \nTotal | June 30, \nmillions \nLevel 1 | 2023 \nLevel 3 | Total | | Fair value through profit and loss | | | | | | | | Cash and cash eq ...

Reported Revenues of $1.93 Billion, Net Income of $373 Million, Adjusted EBITDA1 of $766 Million and Adjusted EBIT of $488 Million2; Achieved Adjusted EBITDA and Adjusted EBIT Margins of 40% and 25%, Respectively Achieved 11% Volume Growth with Record Carried Volume of 952 Thousand TEUs Increased Full Year 2024 Guidance to Adjusted EBITDA of $2.6 Billion to $3.0 Billion and Adjusted EBIT of $1.45 Billion to $1.85 Billion3 Declared Dividend of $112 million, or $0.93 per Share HAIFA, Israel, Aug. 19, 2024 /PR ...