ZIM Integrated to shed light on dividend return in its earnings

By:
on May 19, 2024
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  • ZIM Integrated will publish its financial results this week.
  • These earnings will provide more colour on its Q1 performance.
  • Analysts will be waiting for more information about its dividend.

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ZIM Integrated (NYSE: ZIM) stock price is doing well as investors wait for more clarity on dividends when the company publishes its financial results on Tuesday. It has jumped for two consecutive weeks and is hovering at its highest level since April 2023.

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ZIM Integrated and other shipping companies are doing well. Shares of Maersk, the second-biggest company in the industry, has soared by almost 40% from its lowest point this year. Similarly, other dry bulk companies like Golden Ocean Group have also jumped as demand and prices rise.

ZIM will be in the spotlight this week as the company publishes its financial results. Analysts expect that its revenue rose by 14% YoY in the first quarter to $1.57 billion because of the rising demand and shipping prices.

They also expect that the company will turn a profit. The average earnings per share (EPS) estimate is $1.46, higher than the $0.5 loss it made in the same quarter in 2023. In its Q4 results, the company said that its net loss came in at $143 million in Q4 as its average freight rate in the quarter stood at $1,102.

ZIM Integrated stock

ZIM Integrated stock chart

Data by Drewry shows that the World Container Index (WCI) on May 16th stood at $3,511 and is slowly nearing the year-to-date high of almost $4,000. Analysts expect that this trend will continue as global trade rebounds. 

ZIM Integrated is also benefiting from its vessels. Earlier this year, the company said that it had 46 planned renewals, with most of the vessels being powered by LNG. These vessels are often more efficient and use less energy, leading to a lower cost per TEU. 

Analysts are not highly enthusiastic about ZIM Integrated stock. Of the eight analysts who track the stock, only one – Jefferies – has a buy rating. 4 of them have a hold rating while three have a sell rating on the stock. The average target for the stock is $10.28, down from the current $18.73.

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