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ZIM Integrated Shipping (ZIM) stock drops 4% despite record first-quarter profits

by Mary
May 18, 2022
ZIM Integrated Shipping (ZIM) stock drops 4% despite record first-quarter profits


  • ZIM Integrated Shipping (NYSE:ZIM) the stock is down despite lower earnings today.
  • That saw it beat earnings per share and revenue estimates for the first quarter.
  • It also updated its forecast for 2022.

Source: ImagineStock / Shutterstock.com

ZIM Integrated Shipping (NYSE:ZIM) the stock is lower on Wednesday after the release of the company’s first-quarter 2022 earnings report.

The good news for ZIM shares starts with the company’s diluted earnings per share of $14.19. That’s well above Wall Street’s estimate of $12.53 per share for the period. It’s also a massive increase from diluted EPS of $5.13 over the same period last year.

Added to this are revenues of $3.72 billion. Again, that beat analysts’ revenue estimate of $3.47 billion for the quarter. It’s also a 113% year-over-year increase from revenue of $1.74 billion.

Another boon for ZIM stock is the increased guidance for the full year 2022. The company therefore expects adjusted EBITDA between $7.8 billion and $80.2 billion, as well as an adjusted EBIT ranging from $60.3 billion to $6.7 billions.

Eli Glickman, president and CEO of ZIM Integrated Shipping, said so in the company’s earnings report.

“Since the start of 2022, we have announced attractive charter deals for 17 new build vessels, securing modern and efficient tonnage particularly well suited to serve on our expanded fast-track service network. Importantly, we will retain the flexibility to adjust our fleet size based on market conditions and position ourselves at the forefront of reducing carbon intensity among global ocean liners.

ZIM stock starts the day with strong trading. This has over 4 million shares in motion to date. This is approaching its average daily trading volume of 5.4 million shares.

ZIM stock started higher in premarket trading, but is down 3.7% on Wednesday morning.

Investors looking for more stock market news today have come to the right place!

InvestorPlace has all the latest stock news traders need to know for Wednesday! Among these is what happens with Doximity (NYSE:DOCS) and National Cine Media (NASDAQ:NCMI) stocks, plus the biggest stock moves before market this morning! You can read all about it on the following links!

More Wednesday stock market news

As of the date of publication, William White had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

InvestorPlace

Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
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