ZIM Integrated Shipping stock soars 16% on stellar Q2 results

HAIFA, Israel - ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) saw its stock surge 16.47% after the container shipping company reported second-quarter earnings that handily beat analyst expectations.

The Israeli shipping firm posted adjusted earnings per share of $3.08, significantly above the $1.78 consensus estimate. Revenue came in at $1.93 billion, topping expectations of $1.76 billion.

ZIM's strong performance was driven by an 11% increase in carried volume to a record 952,000 TEUs (twenty-foot equivalent units) and a 40% jump in average freight rates to $1,674 per TEU compared to the same quarter last year.

"We are pleased with our strong second quarter performance, highlighted by outstanding strategic execution that led to record high carried volume," said Eli Glickman, ZIM President & CEO.

The company also raised its full-year 2024 guidance, now expecting adjusted EBITDA between $2.6 billion and $3.0 billion, up from its previous forecast of $1.15 billion to $1.55 billion.

ZIM declared a quarterly dividend of $0.93 per share, representing approximately 30% of second quarter net income.

The shipping industry has benefited from elevated freight rates due to supply chain disruptions and strong demand. ZIM noted it expects results in the second half of 2024 to be better than the first half, driven by "continued supply pressure from the Red Sea crisis, combined with current favorable demand trends."

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Source: Investing.com