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ZIM Incurs Wider-Than-Expected Q1 Loss, Misses on Revenues
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Key Takeaways
ZIM's Q1 loss of 72 cents per share was wider than the Zacks Consensus Estimate loss of 22 cents.
Q1 revenues declined 30.4% to $1.39 billion, owing to the decrease in freight rates and carried volume.
Adjusted EBITDA for the first quarter was $313 million, down 60% on a year-over-year basis.
ZIM Integrated Shipping Services Ltd. (ZIM - Free Report) reported first-quarter 2026 loss per share of 72 cents, which was wider than the Zacks Consensus Estimate loss of 22 cents. In the year-ago reported quarter, ZIM reported earnings per share of $2.45.
Revenues of $1.39 billion missed the Zacks Consensus Estimate of $1.59 billion and declined 30.4% from the year-ago quarter. This was due to the decrease in freight rates and carried volume.
ZIM Integrated Shipping Services Ltd. Price, Consensus and EPS Surprise
Carried volume in the first quarter decreased 8% year over year to 866 thousand TEUs (twenty-foot equivalent units). Average freight rate per TEU in the first quarter decreased 26% year over year to $1,310.
Adjusted EBITDA for the first quarter was $313 million, down 60% on a year-over-year basis. Adjusted EBITDA margins for the first quarter of 2026 fell to 22% from 39% in the year-ago quarter.
Adjusted EBIT loss for the first quarter was $5 million compared with adjusted EBIT of $463 million in the first quarter of 2025. Adjusted EBIT margins in the first quarter of 2026 fell to 0% from 23% in the year-ago quarter.
ZIM exited the first quarter with cash and cash equivalents of $921.6 million compared with $1.05 billion at the end of the previous quarter.
ZIM generated $263 million of cash from operating activities in the first quarter of 2026. Net capital expenditures totaled $28 million for the reported quarter. Free cash flow was $235 million.
ZIM’s First-Quarter 2026 Dividend
Based on its dividend policy and in light of the net loss recorded in the first quarter of 2026, ZIM’s board of directorshas declared not to pay any dividend to shareholders on account of its first-quarter results.
Deal With Hapag-Lloyd
On Feb. 16, 2026, ZIM announced that it had inked a deal with Hapag-Lloyd, per which ZIM would be purchased by Hapag-Lloyd for $35.00 per share in cash. The deal was unanimously approved by ZIM's board of directors and approved by shareholders at a special meeting held on April 30, 2026. Subject to satisfaction of customary closing conditions, including approvals by various regulatory authorities, among them the State of Israel, pursuant to the requirements of the Special State Share (the "Golden Share"), the deal is anticipated to be completed in the fourth quarter of 2026.
Q1 Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported first-quarter 2026 earnings (excluding $1.08 from non-recurring items) of 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents. Earnings increased 39.1% on a year-over-year basis due to high labor costs. Adjusted revenues in the March-end quarter were $14.2 billion, beating the Zacks Consensus Estimate of $14 billion and increasing on a year-over-year basis.
United Airlines Holdings, Inc. (UAL - Free Report) reported solid first-quarter 2026 results wherein the company’s earnings and revenues beat the Zacks Consensus Estimate as well as improved on a year-over-year basis.
UAL's first-quarter 2026 adjusted earnings per share (EPS) (excluding 95 cents from non-recurring items) of $1.19 surpassed the Zacks Consensus Estimate of $1.08 and increased 30.8% on a year-over-year basis. The reported figure lies within the guided range of $1.00-$1.50.
Operating revenues of $14.6 billion outpaced the Zacks Consensus Estimate of $14.3 billion and increased 10.5% year over year. Passenger revenues (which accounted for 90.1% of the top line) increased 11% year over year to $13.1 billion. UAL flights transported 42,486 passengers in the first quarter, up 4.1% year over year.
Cargo revenues fell 1.6% year over year to $422 million. Revenues from other sources rose 10.5% year over year to $1.02 billion.
J.B. Hunt Transport Services (JBHT - Free Report) posted first-quarter 2026 earnings per share of $1.49, up 27% from $1.17 a year ago. The result topped the Zacks Consensus Estimate by $0.04, a 2.8% surprise.
Operating revenues totaled $3.06 billion, rising 4.6% year over year. Revenues beat the consensus mark of $2.94 billion, resulting in a 3.9% surprise, as demand proved resilient across several service offerings, led by Intermodal volume growth and higher revenue per load in select highway-related businesses.
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ZIM Incurs Wider-Than-Expected Q1 Loss, Misses on Revenues
Key Takeaways
ZIM Integrated Shipping Services Ltd. (ZIM - Free Report) reported first-quarter 2026 loss per share of 72 cents, which was wider than the Zacks Consensus Estimate loss of 22 cents. In the year-ago reported quarter, ZIM reported earnings per share of $2.45.
Revenues of $1.39 billion missed the Zacks Consensus Estimate of $1.59 billion and declined 30.4% from the year-ago quarter. This was due to the decrease in freight rates and carried volume.
ZIM Integrated Shipping Services Ltd. Price, Consensus and EPS Surprise
ZIM Integrated Shipping Services Ltd. price-consensus-eps-surprise-chart | ZIM Integrated Shipping Services Ltd. Quote
Carried volume in the first quarter decreased 8% year over year to 866 thousand TEUs (twenty-foot equivalent units). Average freight rate per TEU in the first quarter decreased 26% year over year to $1,310.
Adjusted EBITDA for the first quarter was $313 million, down 60% on a year-over-year basis. Adjusted EBITDA margins for the first quarter of 2026 fell to 22% from 39% in the year-ago quarter.
Adjusted EBIT loss for the first quarter was $5 million compared with adjusted EBIT of $463 million in the first quarter of 2025. Adjusted EBIT margins in the first quarter of 2026 fell to 0% from 23% in the year-ago quarter.
Currently, ZIM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Liquidity
ZIM exited the first quarter with cash and cash equivalents of $921.6 million compared with $1.05 billion at the end of the previous quarter.
ZIM generated $263 million of cash from operating activities in the first quarter of 2026. Net capital expenditures totaled $28 million for the reported quarter. Free cash flow was $235 million.
ZIM’s First-Quarter 2026 Dividend
Based on its dividend policy and in light of the net loss recorded in the first quarter of 2026, ZIM’s board of directorshas declared not to pay any dividend to shareholders on account of its first-quarter results.
Deal With Hapag-Lloyd
On Feb. 16, 2026, ZIM announced that it had inked a deal with Hapag-Lloyd, per which ZIM would be purchased by Hapag-Lloyd for $35.00 per share in cash. The deal was unanimously approved by ZIM's board of directors and approved by shareholders at a special meeting held on April 30, 2026. Subject to satisfaction of customary closing conditions, including approvals by various regulatory authorities, among them the State of Israel, pursuant to the requirements of the Special State Share (the "Golden Share"), the deal is anticipated to be completed in the fourth quarter of 2026.
Q1 Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported first-quarter 2026 earnings (excluding $1.08 from non-recurring items) of 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents. Earnings increased 39.1% on a year-over-year basis due to high labor costs. Adjusted revenues in the March-end quarter were $14.2 billion, beating the Zacks Consensus Estimate of $14 billion and increasing on a year-over-year basis.
United Airlines Holdings, Inc. (UAL - Free Report) reported solid first-quarter 2026 results wherein the company’s earnings and revenues beat the Zacks Consensus Estimate as well as improved on a year-over-year basis.
UAL's first-quarter 2026 adjusted earnings per share (EPS) (excluding 95 cents from non-recurring items) of $1.19 surpassed the Zacks Consensus Estimate of $1.08 and increased 30.8% on a year-over-year basis. The reported figure lies within the guided range of $1.00-$1.50.
Operating revenues of $14.6 billion outpaced the Zacks Consensus Estimate of $14.3 billion and increased 10.5% year over year. Passenger revenues (which accounted for 90.1% of the top line) increased 11% year over year to $13.1 billion. UAL flights transported 42,486 passengers in the first quarter, up 4.1% year over year.
Cargo revenues fell 1.6% year over year to $422 million. Revenues from other sources rose 10.5% year over year to $1.02 billion.
J.B. Hunt Transport Services (JBHT - Free Report) posted first-quarter 2026 earnings per share of $1.49, up 27% from $1.17 a year ago. The result topped the Zacks Consensus Estimate by $0.04, a 2.8% surprise.
Operating revenues totaled $3.06 billion, rising 4.6% year over year. Revenues beat the consensus mark of $2.94 billion, resulting in a 3.9% surprise, as demand proved resilient across several service offerings, led by Intermodal volume growth and higher revenue per load in select highway-related businesses.