ZIM Integrated Shipping Stock Surges Pre-Market After Strong Q3 Earnings, Dividend Announcement: Retail Turns Extremely Bullish

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.

ZIM’s Sentiment Meter and Message Volume as of 8:10 a.m. ET on Nov. 20, 2024 | Source: Stocktwits

Most Stocktwits followers of the ticker expressed optimism on the stock’s potential in coming times.