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What Awaits ZIM Integrated Shipping (ZIM) in Q1 Earnings?

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ZIM Integrated Shipping Services (ZIM - Free Report) is slated to release first-quarter 2022 results on May 18, before market open.

The Zacks Consensus Estimate for first-quarter earnings has been stable at $12.65 per share over the past 60 days. ZIM Integrated Shipping, which went public in February 2021, outpaced on earnings in each of the last four quarters, the average being 22.67%.

Against this backdrop, let’s look at the factors that might have shaped ZIM Integrated Shipping’s March-quarter performance.

With the gradual resumption of economic activities, the world trade picked up the pace, which in turn, is likely to aid the first-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 from fourth-quarter 2021 actuals, driven by improved revenues from containerized cargo, reflecting higher freight rates among other factors.

The positive sentiment surrounding the containership market is a huge positive for ZIM Integrated Shipping and might have aided its top line in the soon-to-be-reported quarter. On the flip side, escalated voyage operating expenses, mainly due to increased fuel costs, are likely to have hurt the bottom line in the March 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 #2, currently.

Highlights of Q4 Earnings

ZIM Integrated Shipping’s fourth-quarter 2021 earnings of $14.17 per share surpassed the Zacks Consensus Estimate of $13.65. Total revenues of $3,466.4 million also surpassed the Zacks Consensus Estimate of $3,442.4 million.

Stocks to Consider

Investors interested in the broader Transportation sector may consider Euronav NV (EURN - Free Report) and Star Bulk Carriers (SBLK - Free Report) as these stocks possess the right combination of elements to beat on earnings this reporting cycle.

Euronav has an Earnings ESP of +10.00% and a Zacks Rank #2. EURN will announce the first-quarter 2022 results on May 12.

Optimism surrounding higher tanker demand is serving EURN well. However, high fuel costs are denting Euronav’s bottom line.

Star Bulk Carriers has an Earnings ESP of +1.77% and a Zacks Rank of 2. SBLK will announce first-quarter 2022 results on May 24.

Improvement in travel demand is likely to have boosted Star Bulk’s voyage revenues in the March quarter. Continued fleet expansion initiatives are also expected to have contributed to SBLK’s performance in the to-be-reported quarter. However, high fuel costs are likely to have stressed SBLK’s bottom line.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

In-Depth Zacks Research for the Tickers Above

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Star Bulk Carriers Corp. (SBLK) - free report >>

Euronav NV (EURN) - free report >>

ZIM Integrated Shipping Services Ltd. (ZIM) - free report >>