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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 2024 results on Aug 19, before market open.
The Zacks Consensus Estimate for second-quarter 2024 earnings is currently pegged at $2.07 per share, implying a 252% surge from the year-ago figure. The Zacks Consensus Estimate for second-quarter 2024 revenues is currently pegged at $1.59 billion, indicating a 21.3% year-over-year increase.
ZIM Integrated Shipping, which went public in February 2021, surpassed the Zacks Consensus Estimate for earnings in only one of the last four quarters and lagged thrice, the average miss being 28.9%.
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.
On a brighter note, continued fleet expansion initiatives are likely to have driven the company’s performance. Moreover, reduced container availability due to Red Sea tensions is likely to have raised freight costs. This is likely to have aided the performance of ZIM, which provides service to East Mediterranean and Israeli ports. Lower capacity is expected to have boosted earnings.
Earnings Whispers
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. This is not the case here.
Earnings ESP: ZIM Integrated Shipping has an Earnings ESP of 0.00% (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.
Delta Air Lines (DAL - Free Report) reported second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share, which marginally missed the Zacks Consensus Estimate of $2.37. Earnings decreased 11.9% on a year-over-year basis. Apart from high costs, the carrier blamed the discounting pressure at the low end of the market, which hurt its pricing power, for the disappointing performance.
Revenues of $16.65 billion surpassed the Zacks Consensus Estimate of $16.25 billion and increased 6.9% year over year, driven by upbeat air travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $15.41 billion, up 5.4% year over year.
J.B. Hunt Transport Services (JBHT - Free Report) reported disappointing second-quarter 2024 results wherein both earnings and revenues lagged the Zacks Consensus Estimate.
JBHT’s earnings of $1.32 per share missed the Zacks Consensus Estimate of $1.51 and declined 27% year over year.
JBHT’s total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $3.03 billion and fell 7% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year. The downfall was owing to a 5% decrease in gross revenue per load in Intermodal and a decline in load volume of 25% in Integrated Capacity Solutions (“ICS”), 9% in Truckload and 9% in Dedicated Contract Services. These were partially offset by the 5% revenue growth of Final Mile Services, primarily driven by new contracts implemented in the past year and a 5% increase in revenue per load in ICS.
United Airlines Holdings (UAL - Free Report) reported second-quarter 2024 earnings per share (excluding 18 cents from non-recurring items) of $4.14, which surpassed the Zacks Consensus Estimate of $3.97. Earnings decreased 17.7% on a year-over-year basis.
Operating revenues of $14.98 billion missed the Zacks Consensus Estimate of $15.13 billion. The top line increased 5.7% year over year due to upbeat air travel demand. This was driven by a 5.2% rise in passenger revenues (which accounted for 91.2% of the top line) to $13.680 billion. Almost 44,375 passengers traveled on UAL flights in the second quarter, up 5.8% year over year.
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What Awaits ZIM Integrated Shipping (ZIM) in Q2 Earnings?
ZIM Integrated Shipping Services (ZIM - Free Report) is slated to release second-quarter 2024 results on Aug 19, before market open.
The Zacks Consensus Estimate for second-quarter 2024 earnings is currently pegged at $2.07 per share, implying a 252% surge from the year-ago figure. The Zacks Consensus Estimate for second-quarter 2024 revenues is currently pegged at $1.59 billion, indicating a 21.3% year-over-year increase.
ZIM Integrated Shipping, which went public in February 2021, surpassed the Zacks Consensus Estimate for earnings in only one of the last four quarters and lagged thrice, the average miss being 28.9%.
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.
On a brighter note, continued fleet expansion initiatives are likely to have driven the company’s performance. Moreover, reduced container availability due to Red Sea tensions is likely to have raised freight costs. This is likely to have aided the performance of ZIM, which provides service to East Mediterranean and Israeli ports. Lower capacity is expected to have boosted earnings.
Earnings Whispers
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. This is not the case here.
Earnings ESP: ZIM Integrated Shipping has an Earnings ESP of 0.00% (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 currently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported second-quarter 2024 earnings (excluding 35 cents from non-recurring items) of $2.36 per share, which marginally missed the Zacks Consensus Estimate of $2.37. Earnings decreased 11.9% on a year-over-year basis. Apart from high costs, the carrier blamed the discounting pressure at the low end of the market, which hurt its pricing power, for the disappointing performance.
Revenues of $16.65 billion surpassed the Zacks Consensus Estimate of $16.25 billion and increased 6.9% year over year, driven by upbeat air travel demand. Adjusted operating revenues (excluding third-party refinery sales) came in at $15.41 billion, up 5.4% year over year.
J.B. Hunt Transport Services (JBHT - Free Report) reported disappointing second-quarter 2024 results wherein both earnings and revenues lagged the Zacks Consensus Estimate.
JBHT’s earnings of $1.32 per share missed the Zacks Consensus Estimate of $1.51 and declined 27% year over year.
JBHT’s total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $3.03 billion and fell 7% year over year. Total operating revenues, excluding fuel surcharge revenue, fell 6% year over year. The downfall was owing to a 5% decrease in gross revenue per load in Intermodal and a decline in load volume of 25% in Integrated Capacity Solutions (“ICS”), 9% in Truckload and 9% in Dedicated Contract Services. These were partially offset by the 5% revenue growth of Final Mile Services, primarily driven by new contracts implemented in the past year and a 5% increase in revenue per load in ICS.
United Airlines Holdings (UAL - Free Report) reported second-quarter 2024 earnings per share (excluding 18 cents from non-recurring items) of $4.14, which surpassed the Zacks Consensus Estimate of $3.97. Earnings decreased 17.7% on a year-over-year basis.
Operating revenues of $14.98 billion missed the Zacks Consensus Estimate of $15.13 billion. The top line increased 5.7% year over year due to upbeat air travel demand. This was driven by a 5.2% rise in passenger revenues (which accounted for 91.2% of the top line) to $13.680 billion. Almost 44,375 passengers traveled on UAL flights in the second quarter, up 5.8% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.