Zim Integrated Q1 earnings: 23 cents a share dividend announced

Zim Integrated Shipping Services Ltd (NYSE: ZIM) is trading about 10% down in premarket on Tuesday after reporting worse than expected per-share earnings for its fiscal first quarter.

Zim Integrated’s guidance for the future

The stock is taking a hit even though the cargo transport company raised its guidance for the full year.

$ZIM now forecasts its adjusted EBITDA to fall between $1.15 billion and $1.55 billion in 2024. Eli Glickman – chief executive of the New York listed firm said in a press release today:

Looking ahead, we now expect freight rates to remain stronger for longer than initially anticipated due to a combination of continued pressure on supply and availability of equipment and a recent uptick in demand.

The company based out of Haifa, Israel ended the quarter with $2.25 billion in cash and $3.11 billion of net debt. Zim Integrated stock is currently up roughly 90% versus its year-to-date low.

Zim Integrated Q1 earnings snapshot

• Earned $92 million that translates to 75 cents a share
• Had $58 million of loss (50 cents per share) a year ago
• Adjusted EBITDA popped 14% as per the earnings report
• Revenue also jumped 14% year-over-year to $1.56 billion
• Consensus was $1.14 a share on $1.56 billion revenue

Zim Integrated saw carried volume increase 10% while average freight rate per TEU was up 4.0% in Q1. CEO Glickman also said on Wednesday:

While the rate environment during the latter part of 2024 remains unknown, we are confident in ZIM’s strategic positioning as an agile container shipping player with a competitive cost- and fuel-efficient, modern fleet.

$ZIM announced a dividend of 23 cents per share on Tuesday that translates to about 30% of its net income in the first quarter.