Zim Integrated swings to loss in fiscal Q4

Zim Integrated Shipping Services Ltd (NYSE: ZIM) is in the red today even though it reported better-than-expected earnings for its fourth financial quarter.

Zim Integrated’s outlook for fiscal 2024

Shares are still trending down perhaps because investors are not fully content with the guidance.

The cargo transport company forecasts up to $1.45 billion in adjusted EBITDA for 2024. Eli Glickman – the chief executive of Zim Integrated said in a press release on Wednesday:

We’re well on our way to markedly improving our cost structure, enhancing our commercial resilience, and enabling reduced carbon emissions for both $ZIM and our customers moving forward.

The New York listed firm ended last year with $279 million in net cash and $2.3 billion of net debt on the balance sheet. Zim Integrated stock is now down more than 25% versus its year-to-date high.

Notable figures in Zim Integrated Q4 earnings release

• Lost $147 million that translates to $1.23 per share
• Had $417 million in net profit ($3.44 a share) lasts year
• Adjusted EBITDA crashed 80% as per the earnings report
• Revenue also tanked 45% year-over-year to $1.21 billion
• Consensus was $1.44 a share loss on $1.21 billion revenue

Zim Integrated saw carried volume decline 4.6% in the fourth quarter while average freight rate per TEU was down 48% in Q4. CEO Glickman also said on Wednesday:

We intend to continue to take decisive steps to further benefit from our strategic transformation and expect $ZIM to emerge in a stronger position than ever in 2025 and beyond.

Wall Street currently has a consensus “underweight” rating on Zim Integrated stock.