It has been about a month since the last earnings report for ZIM Integrated Shipping Services (ZIM Quick QuoteZIM - Free Report) . Shares have lost about 24.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is ZIM due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Q3 Earnings & Revenues Beat

ZIM’s third-quarter 2024 earnings of $9.34 per share breezed past the Zacks Consensus Estimate of $7.45. In the year-ago quarter, the company had incurred a loss of $1.97 per share. Quarterly revenues of $2.77 billion beat the Zacks Consensus Estimate of $2.21 billion. In the year-ago quarter, the shipping company had reported revenues of $1.27 billion.

Management attributed the strong year-over-year improvements to the addition of the latest, larger and cost-effective ships to its fleet. The uptick in demand for ocean shipping also boosted ZIM’s quarterly performance.

Carried volume in the third quarter increased 12% year over year to 970 thousand TEUs . The average freight rate per TEU in the September quarter surged 118% year over year to $2,480. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in the quarter skyrocketed 626% year over year to $1.53 billion.

ZIM’s board declared a regular dividend of approximately $340 million or $2.81 per ordinary share. Additionally, the board declared a special dividend of approximately $100 million, translating into 84 cents per share. The total payout, therefore, is $3.65 per share.

ZIM raised its guidance for 2024 adjusted EBITDA. The company expects the metric to be $3.3-$3.6 billion (compared with $2.6-$3 billion previously stated). Adjusted EBIT (earnings before interest and taxes) for 2024 is expected to be $2.15-$2.45 billion.

 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates review.

The consensus estimate has shifted 55.6% due to these changes.

VGM Scores

At this time, ZIM has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise ZIM has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

ZIM belongs to the Zacks Transportation - Shipping industry. Another stock from the same industry, Golar LNG (GLNG Quick QuoteGLNG - Free Report) , has gained 12.6% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.

Golar LNG reported revenues of $63.92 million in the last reported quarter, representing a year-over-year change of -4%. EPS of $0.53 for the same period compares with $0.55 a year ago.

For the current quarter, Golar LNG is expected to post earnings of $0.47 per share, indicating a change of -47.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +14.6% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Golar LNG. Also, the stock has a VGM Score of F.