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What Awaits ZIM Integrated Shipping (ZIM) in Q3 Earnings?
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ZIM Integrated Shipping Services (ZIM - Free Report) is slated to release third-quarter 2023 results on Nov 15, before market open.
The Zacks Consensus Estimate is pegged at a loss of $1.56 per share, widened from a loss of 95 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 and lagged twice, the average miss being 45.23%.
ZIM Integrated Shipping Services Ltd. Price and EPS Surprise
Against this backdrop, let’s look at the factors that might have shaped ZIM’s September-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.
Oil prices surged 28.5% in the July-September period due to an extension of production cut by Saudi Arabia and Russia through the current-year end. As fuel expenses represent a key input cost for any transportation player, an uptick in this metric is likely to have hurt ZIM’s bottom line in the quarter under review. Also, supply-chain disruptions, lower shipments and a slowdown in freight demand might have dented ZIM’s quarterly performance.
On a brighter note, continued fleet expansion initiatives are 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 -10.81% (the Most Accurate Estimate is pegged at a loss of $1.73 and the Zacks Consensus Estimate is pegged at a loss of $1.56). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ZIM Integrated Shipping currently has a Zacks Rank #4 (Sell).
Q3 Performances of Some Other Transportation Companies
J.B. Hunt Transport Services' (JBHT - Free Report) third-quarter 2023 EPS of $1.80 missed the Zacks Consensus Estimate of $1.85 and declined 30% year over year.
JBHT’s total operating revenues of $3,163.8 million also lagged the Zacks Consensus Estimate of $3,224 million and fell 18% year over year. Total operating revenues, excluding fuel surcharges, decreased 15% year over year.
Delta Air Lines (DAL - Free Report) reported third-quarter 2023 EPS (excluding 31 cents from non-recurring items) of $2.03, which comfortably beat the Zacks Consensus Estimate of $1.92 and improved 35% on a year-over-year basis.
DAL’s revenues of $15,488 million outpaced the Zacks Consensus Estimate of $15,290.4 million. The top line jumped 11% on a year-over-year basis, driven by higher air-travel demand.
Alaska Air Group (ALK - Free Report) reported third-quarter 2023 EPS of $1.83, which missed the Zacks Consensus Estimate of $1.88 and declined 28% year over year.
Operating revenues of $2,839 million fell short of the Zacks Consensus Estimate of $2,876.1 million. The top line inched up 0.4% year over year, with passenger revenues accounting for 92.2% of the top line and increasing 0.1%.
Image: Bigstock
What Awaits ZIM Integrated Shipping (ZIM) in Q3 Earnings?
ZIM Integrated Shipping Services (ZIM - Free Report) is slated to release third-quarter 2023 results on Nov 15, before market open.
The Zacks Consensus Estimate is pegged at a loss of $1.56 per share, widened from a loss of 95 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 and lagged twice, the average miss being 45.23%.
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 September-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.
Oil prices surged 28.5% in the July-September period due to an extension of production cut by Saudi Arabia and Russia through the current-year end. As fuel expenses represent a key input cost for any transportation player, an uptick in this metric is likely to have hurt ZIM’s bottom line in the quarter under review. Also, supply-chain disruptions, lower shipments and a slowdown in freight demand might have dented ZIM’s quarterly performance.
On a brighter note, continued fleet expansion initiatives are 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 -10.81% (the Most Accurate Estimate is pegged at a loss of $1.73 and the Zacks Consensus Estimate is pegged at a loss of $1.56). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ZIM Integrated Shipping currently has a Zacks Rank #4 (Sell).
Q3 Performances of Some Other Transportation Companies
J.B. Hunt Transport Services' (JBHT - Free Report) third-quarter 2023 EPS of $1.80 missed the Zacks Consensus Estimate of $1.85 and declined 30% year over year.
JBHT’s total operating revenues of $3,163.8 million also lagged the Zacks Consensus Estimate of $3,224 million and fell 18% year over year. Total operating revenues, excluding fuel surcharges, decreased 15% year over year.
Delta Air Lines (DAL - Free Report) reported third-quarter 2023 EPS (excluding 31 cents from non-recurring items) of $2.03, which comfortably beat the Zacks Consensus Estimate of $1.92 and improved 35% on a year-over-year basis.
DAL’s revenues of $15,488 million outpaced the Zacks Consensus Estimate of $15,290.4 million. The top line jumped 11% on a year-over-year basis, driven by higher air-travel demand.
Alaska Air Group (ALK - Free Report) reported third-quarter 2023 EPS of $1.83, which missed the Zacks Consensus Estimate of $1.88 and declined 28% year over year.
Operating revenues of $2,839 million fell short of the Zacks Consensus Estimate of $2,876.1 million. The top line inched up 0.4% year over year, with passenger revenues accounting for 92.2% of the top line and increasing 0.1%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar