ZIM Integrated Shipping Stock Surges Pre-Market After Strong Q3 Earnings, Dividend Announcement: Retail Turns Extremely Bullish
Synopsis
ZIM reported a 117% year-over-year (YoY) rise in its third-quarter revenue to $2.765 billion, way above Wall Street’s estimate of $2.39 billion.
Shares of ZIM Integrated Shipping Services ($ZIM) surged over 9% in Wednesday’s pre-market after the cargo shipping firm reported upbeat third-quarter earnings and raised its full-year guidance.
Following the earnings report, ZIM became the fourth-most trending ticker on Stocktwits.
ZIM reported a 117% year-over-year (YoY) rise in its third-quarter revenue to $2.765 billion, way above Wall Street’s estimate of $2.39 billion. The company reported a net income of $1.13 billion compared to a net loss of $2.27 billion in the third quarter last year. Earnings per share came in at $9.34, significantly outperforming an analyst estimate of $6.95.
The board declared a regular cash dividend of approximately $340 million, or $2.81 per ordinary share and a special dividend of approximately $100 million, or $0.84 per share.
CEO Eli Glickman said the company’s decision to increase its exposure to spot volumes in the Transpacific trade drove the strong third-quarter earnings.
"We will close out the year with the final delivery of the remaining four out of 46 newbuild containerships that we secured, which include 28 LNG-powered vessels,” he said.
During the quarter, carried volume stood at 970 thousand twenty-foot equivalent unit (TEUs), reflecting a YoY growth of 12%.
Meanwhile, ZIM increased its guidance for the full-year 2024, expecting to generate adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) between $3.3 billion and $3.6 billion compared to an earlier guidance range of $2.6 billion and $3.0 billion.
Following the earnings release, retail sentiment on Stocktwits jumped into the ‘extremely bullish’ territory (86/100), supported by ‘extremely high’ retail chatter.
Most Stocktwits followers of the ticker expressed optimism on the stock’s potential in coming times.
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