Zim Integrated swings to loss in fiscal Q4

By:
on Mar 13, 2024
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  • Zim Integrated reported its financial results for the fourth quarter today.
  • Here's what its CEO Eli Glickman said in a press release on Wednesday.
  • $ZIM stock is down some 5.0% following the quarterly report this morning.

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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.

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Zim Integrated’s outlook for fiscal 2024

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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

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  • 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.

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