- ZIM Integrated Shipping reported a revenue of $2.01 billion for the first quarter of 2025, surpassing expectations. This is a 28% increase compared to last year. The revenue estimate was $1.85 billion.
- The earnings per share (EPS) jumped to $2.45 compared to 75c in the previous year.
- Adjusted EBIT was reported at $463 million, significantly exceeding the $167 million from last year and the estimated $379.3 million.
- Adjusted EBITDA increased by 82% year-over-year, reaching $779 million against an estimate of $666.2 million.
- The adjusted EBIT margin improved to 23% from 11% the previous year, while the adjusted EBITDA margin rose to 39% from 27%.
- ZIM carried a volume of 944 thousand TEUs, marking a 12% increase year-over-year.
- The average freight rate per TEU rose by 22% to $1,776.
- The company maintains its forecast for the full year adjusted EBITDA to be between $1.6 billion and $2.2 billion, with analysts estimating around $1.86 billion.
- The forecast for adjusted EBIT remains between $350 million and $950 million for 2025.
- The company acknowledges an uncertain operating environment affecting global trade and economic expectations.
- ZIM believes it is positioned for long-term profitable growth due to its lower cost base, despite the uncertain market conditions.
- Analyst recommendations for ZIM include 1 buy, 2 holds, and 5 sells.
ZIM Integrated Shipping Services on Smartkarma
Analyst coverage of ZIM Integrated Shipping Services on Smartkarma by Daniel Hellberg provides bearish insights on the company. In an analysis titled “Don’t Expect A Resolution of Tariff Chaos To Lift Container Shipping Rates Like Covid-19 Did,” Hellberg highlights reasons why a resolution of US tariff chaos may not lead to an increase in spot container shipping rates in 2025. Despite market optimism, Hellberg points out factors indicating a limited rate surge in the near to medium-term.
In further reports, such as “ZIM Q424 Results, FY25 Guidance: Listen When Management Says ‘We’re Gonna Earn Much Less This Year’,” and “Monthly Container Shipping Tracker,” Hellberg maintains a negative outlook for the deep-sea container shipping sector. The grim FY25 guidance and bleak commentary from ZIM management reinforce Hellberg’s bearish medium-term view, cautioning investors to pay close attention to potential declines in rates and profitability in the coming years.
A look at ZIM Integrated Shipping Services Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma Smart Scores, ZIM Integrated Shipping Services is set for a promising future. The company has received a top score for both its value and dividend factors, indicating strong financial health and potential for good returns for investors. With a solid resilience score, ZIM Integrated Shipping Services is well-positioned to navigate through challenges and maintain stability. However, its growth and momentum scores are slightly lower, suggesting room for improvement in these areas. Overall, ZIM Integrated Shipping Services, a provider of shipping services worldwide, appears to be a solid investment option with notable strengths in value and dividends.
ZIM Integrated Shipping Services Ltd offers a range of shipping services including multi-modal transportation, cargo handling, tariff management, and schedule information to clients globally. With top scores in value and dividend factors, the company demonstrates financial strength and a commitment to rewarding investors. While growth and momentum scores are not as high, ZIM Integrated Shipping Services remains resilient, indicating its ability to withstand uncertainties. Investors looking for a company with strong financial performance and stability may find ZIM Integrated Shipping Services to be a promising choice in the shipping industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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