ZIM Shipping Stock Drops 4% Despite Record Q1 Earnings

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  • ZIM Integrated Shipping stock is dipping despite an earnings beat
  • That saw it beat out earnings per share and revenue estimates for Q1
  • It also updated its guidance for 2022

ZIM Integrated Shipping stock is falling on Wednesday following the release of the company’s earnings report for the first quarter of 2022, reports Seeking Alpha.

Stocks fall!

The good news for ZIM stock 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 compared to diluted EPS of $5.13 from the same time last year.

Adding to that is revenue of $3.72 billion. Yet again, this blows past analysts’ revenue estimate of $3.47 billion for the quarter. It’s also a 113% increase year-over-year from revenue of $1.74 billion.

Another boon to ZIM stock is increased guidance for the full year of 2022. This has the company expecting Adjusted EBITDA between $7.8 billion and $8.2 billion, as well as Adjusted EBIT ranging from $6.3 billion to $6.7 billion.

Attractive chartering transactions for newbuilds

Eli Glickman, president and CEO of ZIM Integrated Shipping, said, “Since the beginning of 2022, we have announced attractive chartering transactions for 17 newbuild vessels, securing modern and efficient tonnage particularly well-suited to serve on our expanded network of expedited services. Importantly, we will maintain flexibility to adjust our fleet size based on market conditions and be positioned at the forefront of carbon intensity reduction among global liners.”

ZIM stock is starting off the day with strong trading. This has more than 4 million shares moving as of this writing. That’s closing in on its daily average trading volume of 5.4 million shares.

ZIM stock started off up in pre-market trading but is down 3.7% as of Wednesday morning.

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Source: Seeking Alpha

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