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What Awaits ZIM Integrated Shipping (ZIM) in Q2 Earnings?

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ZIM Integrated Shipping Services (ZIM - Free Report) is scheduled to report second-quarter 2021 results on Aug 18, before market open.

The Zacks Consensus Estimate for second-quarter earnings has been stable at $5.71 per share over the past 60 days. The consensus mark for revenues is currently pegged at $1.91 billion.

Against this backdrop, let’s take a look at the factors that might have shaped the company’s June-quarter performance.

With the gradual resumption of economic activities, the world trade picked up the pace, which in turn, is likely to aid the second-quarter results of shipping stocks like ZIM Integrated Shipping. This is because the shipping industry is responsible for transporting an enormous proportion of goods involved in world trade. Revenues in the to-be-reported quarter are expected to have increased sequentially, driven by improved revenues from containerized cargo, reflecting higher freight rates among other factors.

Bullishness surrounding the containership market is a huge positive for ZIM Integrated Shipping and might have boosted its top line in the soon-to-be-reported quarter. The containership market is being aided by ramped-up manufacturing activities in Asia besides other factors. The already steep container rates were further hiked by the Suez Canal crisis earlier this year.

On the flip side, escalated voyage operating expenses, mainly due to increased fuel costs, are likely to have hurt the bottom line in the June quarter.

Earnings Whispers

Our proven model does not predict an earnings beat for ZIM Integrated Shipping 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 a positive surprise. However, that is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: ZIM Integrated Shipping has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: ZIM Integrated Shipping has a Zacks Rank #3, currently.

Highlights of Q1 Earnings

ZIM Integrated Shipping’s first-quarter earnings of $5.13 per share surpassed the Zacks Consensus Estimate of $4.09. Total revenues of $1,744.3 million also surpassed the Zacks Consensus Estimate of $1,533.5 million.

Sectorial Snapshots

Let’s look into some of the other recently released earnings reports from companies within the Zacks Transportation sector.

Knight-Swift Transportation Holdings (KNX - Free Report) , presently carrying a Zacks Rank #2, reported second-quarter 2021 earnings (excluding 6 cents from non-recurring items) of 98 cents per share, surpassing the Zacks Consensus Estimate of 87 cents. Total revenues of $1,315.7 million also outperformed the Zacks Consensus Estimate of $1,300.8 million.

SkyWest (SKYW - Free Report) , currently flaunting a Zacks Rank of 1, reported second-quarter 2021 earnings of $1.22 per share, beating the Zacks Consensus Estimate of 28 cents. Quarterly earnings also came against the year-ago loss per share of 51 cents. Revenues in the June quarter summed $657 million, not only surpassing the Zacks Consensus Estimate of $581.5 million but also increasing 87.7% year over year.

United Parcel Service (UPS - Free Report) , currently carrying a Zacks Rank of 3, reported second-quarter 2021 earnings (excluding a penny from non-recurring items) of $3.06 per share, beating the Zacks Consensus Estimate of $2.75. Quarterly revenues of $23,424 million also outperformed the Zacks Consensus Estimate of $23,085.4 million.