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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 slated to release second-quarter 2023 results on Aug 16, before market open.
The Zacks Consensus Estimate is pegged at a loss of 88 cents per share, widened from a loss of 53 cents over the past 90 days. ZIM Integrated Shipping, which went public in February 2021, surpassed the Zacks Consensus Estimate for earnings in two of the last four quarters (missed twice), the average miss being 33.11%.
ZIM Integrated Shipping Services Ltd. Price and EPS Surprise
Against this backdrop, let’s look at the factors that might have shaped ZIM’s June-quarter performance.
We expect the company’s bottom-line performance to have been hit by escalated voyage operating expenses. High fuel and labor costs are also likely to have played spoilsport. Even though fuel price has come down from the highs witnessed earlier, it still remains at an elevated level.
Supply-chain disruptions, lower shipments and slowdown in freight demand might have dented ZIM’s performance in the quarter under review.
On a brighter note, buoyant travel demand is likely to have boosted voyage revenues in the quarter under review. Continued fleet-expansion initiatives are also likely to have driven the company’s performance.
Earnings Whisper
Our proven model does not conclusively 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 an earnings beat.
Earnings ESP: ZIM Integrated Shipping has an Earnings ESP of -20.00% (the Most Accurate Estimate is pegged at a loss of $1.06 and the Zacks Consensus Estimate is pegged at a loss of 88 cents). 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 #4 (Sell), currently.
Q2 Performance of Some Other Transportation Companies
American Airlines’ (AAL - Free Report) second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues.
Operating revenues of $14,055 million rose 4.7% year over year. The top line beat the Zacks Consensus Estimate of $13,736.3 million.
Passenger revenues, accounting for 92.3% of the top line, increased to $12,978 million from $12,223 million a year ago. This was driven by strong air-travel demand, mainly on the domestic front.
Demand was particularly strong in June on the back of growth in close-in bookings. AAL currently carries a Zacks Rank #2.
United Airlines (UAL - Free Report) , currently sporting a Zacks Rank #1, reported second-quarter 2023 earnings per share of $5.03, which outpaced the Zacks Consensus Estimate of $3.99 and improved more than 100% year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Operating revenues of $14,178 million outshined the Zacks Consensus Estimate of $13,927.1 million. UAL’s revenues climbed 17.1% year over year due to upbeat air-travel demand. The uptick was driven by a 20.1% rise in passenger revenues (accounting for 91.7% of the top line) to $13,002 million. Nearly 42 million passengers traveled on UAL flights in the second quarter.
Image: Bigstock
What Awaits ZIM Integrated Shipping (ZIM) in Q2 Earnings?
ZIM Integrated Shipping Services (ZIM - Free Report) is slated to release second-quarter 2023 results on Aug 16, before market open.
The Zacks Consensus Estimate is pegged at a loss of 88 cents per share, widened from a loss of 53 cents over the past 90 days. ZIM Integrated Shipping, which went public in February 2021, surpassed the Zacks Consensus Estimate for earnings in two of the last four quarters (missed twice), the average miss being 33.11%.
ZIM Integrated Shipping Services Ltd. Price and EPS Surprise
ZIM Integrated Shipping Services Ltd. price-eps-surprise | ZIM Integrated Shipping Services Ltd. Quote
Against this backdrop, let’s look at the factors that might have shaped ZIM’s June-quarter performance.
We expect the company’s bottom-line performance to have been hit by escalated voyage operating expenses. High fuel and labor costs are also likely to have played spoilsport. Even though fuel price has come down from the highs witnessed earlier, it still remains at an elevated level.
Supply-chain disruptions, lower shipments and slowdown in freight demand might have dented ZIM’s performance in the quarter under review.
On a brighter note, buoyant travel demand is likely to have boosted voyage revenues in the quarter under review. Continued fleet-expansion initiatives are also likely to have driven the company’s performance.
Earnings Whisper
Our proven model does not conclusively 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 an earnings beat.
Earnings ESP: ZIM Integrated Shipping has an Earnings ESP of -20.00% (the Most Accurate Estimate is pegged at a loss of $1.06 and the Zacks Consensus Estimate is pegged at a loss of 88 cents). 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 #4 (Sell), currently.
Q2 Performance of Some Other Transportation Companies
American Airlines’ (AAL - Free Report) second-quarter 2023 earnings (excluding 4 cents from non-recurring items) of $1.92 per share easily beat the Zacks Consensus Estimate of $1.58. AAL’s results were aided by lower costs and higher revenues.
Operating revenues of $14,055 million rose 4.7% year over year. The top line beat the Zacks Consensus Estimate of $13,736.3 million.
Passenger revenues, accounting for 92.3% of the top line, increased to $12,978 million from $12,223 million a year ago. This was driven by strong air-travel demand, mainly on the domestic front.
Demand was particularly strong in June on the back of growth in close-in bookings. AAL currently carries a Zacks Rank #2.
United Airlines (UAL - Free Report) , currently sporting a Zacks Rank #1, reported second-quarter 2023 earnings per share of $5.03, which outpaced the Zacks Consensus Estimate of $3.99 and improved more than 100% year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Operating revenues of $14,178 million outshined the Zacks Consensus Estimate of $13,927.1 million. UAL’s revenues climbed 17.1% year over year due to upbeat air-travel demand. The uptick was driven by a 20.1% rise in passenger revenues (accounting for 91.7% of the top line) to $13,002 million. Nearly 42 million passengers traveled on UAL flights in the second quarter.
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