ZIM Integrated Shipping stock rises 16% on strong Q2 results by Investing.com

HAIFA, Israel – ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) saw its stock jump 16.47% after the container shipping company reported second-quarter earnings that easily beat analysts’ expectations.

The Israeli shipping company posted adjusted earnings per share of $3.08, significantly above the consensus estimate of $1.78. Revenue was $1.93 billion, beating expectations of $1.76 billion.

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

“We are pleased with our strong performance in the second quarter, highlighted by outstanding strategic execution that led to record volume carried,” said Eli Glickman, ZIM President and 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 estimate of $1.15 billion in 1 .55 billion dollars.

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

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

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