Back to top

Image: Bigstock

What Awaits ZIM Integrated Shipping (ZIM) in Q4 Earnings?

Read MoreHide Full Article

ZIM Integrated Shipping Services (ZIM - Free Report) is slated to release fourth-quarter 2022 results on Mar 13, before market open.

The Zacks Consensus Estimate for earnings has declined 37.4% to $2.26 per share over the past 60 days. ZIM Integrated Shipping, which went public in February 2021, surpassed the Zacks Consensus Estimate for earnings in three of the last four quarters (missed once). The average beat is 2.28%.

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

We expect ZIM Integrated Shipping’s bottom-line performance in the to-be-reported quarter to have been hit by escalated voyage operating expenses. High fuel costs are also likely to have played spoilsport.

Supply-chain disruptions and lower shipments might have dented performance. Slowdown in freight traffic is also likely to have affected fourth-quarter performance.

On a brighter note, 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.

Earnings Whispers

Our proven model predicts 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 an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: ZIM Integrated Shipping has an Earnings ESP of +22.57% as the Most Accurate Estimate is currently pegged at $2.77 per share, much higher than the Zacks Consensus Estimate of $2.26. 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.

Q4 Performances of Some Transportation Companies

United Airlines’ (UAL - Free Report) fourth-quarter 2022 earnings of $2.46 per share beat the Zacks Consensus Estimate of $2.07. In the year-ago quarter, UAL incurred a loss of $1.60 per share when air-travel demand was not as buoyant as in the current scenario. The fourth quarter of 2022 was the third consecutive profitable quarter at UAL since the onset of the pandemic.

Operating revenues of $12,400 million beat the Zacks Consensus Estimate of $12,230 million and increased 51.37% year over year owing to upbeat air-travel demand. The optimistic air-travel-demand scenario is also evident from the fact that total operating revenues increased 13.9% from fourth-quarter 2019 (pre-COVID-19) levels.

Delta Air Lines’ (DAL - Free Report) fourth-quarter 2022 earnings (excluding 19 cents from non-recurring items) of $1.48 per share beat the Zacks Consensus Estimate of $1.29. DAL reported earnings of 22 cents per share a year ago, dull in comparison to the current scenario as air-travel demand was not so buoyant then.

DAL reported revenues of $13,435 million, which also surpassed the Zacks Consensus Estimate of $13,030.3 million. Driven by the high air-travel demand, total revenues increased by more than 41.87% on a year-over-year basis.

CSX Corporation’s (CSX - Free Report) fourth-quarter earnings of 49 cents per share beat the Zacks Consensus Estimate of 47 cents and improved 16.67% year over year.

Total revenues of $3,730 million surpassed the Zacks Consensus Estimate of $3,722.1 million. CSX's top line increased 8.84% year over year on the back of higher fuel surcharge, pricing gains, an increase in volumes, and increases in storage and other revenues. Overall revenues per unit increased by 11%.

Published in