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What Awaits ZIM Integrated Shipping (ZIM) in Q2 Earnings?

Zacks Equity Research
·4-min read

ZIM Integrated Shipping Services ZIM is slated to release second-quarter 2022 results on Aug 17, before market open.

The Zacks Consensus Estimate for second-quarter earnings has declined 2.25% to $12.16 per share over the past 60 days. ZIM Integrated Shipping, which went public in February 2021, outpaced on earnings in each of the last four quarters, the average being 19.35%.

Against this backdrop, let’s look at the factors that might have shaped ZIM Integrated Shipping’s June-quarter performance.

We expect ZIM Integrated Shipping’s bottom-line performance in the to-be-reported quarter to have been hit by escalated voyage operating expenses, mainly due to increased fuel costs.

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Supply-chain disruptions might have dented performance due to lower shipments. Slowdown in freight traffic is also likely to have hurt second-quarter performance.

On a brighter note, the positive sentiment surrounding the containership market is a huge positive for ZIM Integrated Shipping and might have aided its top line in the soon-to-be-reported quarter.

Earnings Whispers

Our proven model does not predict an earnings beat for ZIM Integrated Shipping this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise. However, that is not the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: ZIM Integrated Shipping has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: ZIM Integrated Shipping has a Zacks Rank #2, currently.

Highlights of Q1 Earnings

ZIM Integrated Shipping’s first-quarter 2022 earnings of $14.19 per share surpassed the Zacks Consensus Estimate of $12.65. Total revenues came in at $3,716.4 million, driven by improved freight rates as well as an uptick in carried cargo volume.

Performances of Some Transportation Companies in Q2

J.B. Hunt Transport Services, Inc. JBHT reported better-than-expected second-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate. JBHT’s quarterly earnings of $2.42 per share surpassed the Zacks Consensus Estimate of $1.61 and improved 50.3% year over year.

JBHT’s total operating revenues of $3,837.53 million also outperformed the Zacks Consensus Estimate of $2,908.37 million. The top line jumped 32% year over year on the back of strength across all segments. JBHT’s total operating revenues, excluding fuel surcharges, rose 21.2% year over year.

CSX Corporation CSX reported better-than-expected second-quarter 2022 results, wherein both earnings and revenues outperformed the Zacks Consensus Estimate.

CSX’s quarterly earnings of 50 cents per share (excluding 4 cents from non-recurring items) beat the Zacks Consensus Estimate of 47 cents and improved 25% year over year.

CSX’s total revenues of $3,815 million outperformed the Zacks Consensus Estimate of $2,990 million. The top line increased 28% year over year on the back of higher revenues in almost all markets, driven by pricing gains, fuel surcharge and contribution from the acquisition of Quality Carriers. CSX’s overall revenues per unit increased 27%.

C.H. Robinson Worldwide’s CHRW second-quarter 2022 earnings of $2.67 per share surpassed the Zacks Consensus Estimate of $1.93. Moreover, the bottom line surged 85.4% year over year. Strong performance of CHRW’s truckload and less-than-truckload businesses aided results.

Total revenues of $6,798.5 million outperformed the Zacks Consensus Estimate of $6,717.7 million. The top line jumped 22.9% year over year owing to favorable pricing across most of CHRW’s services, and higher truckload and ocean volume.


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ZIM Integrated Shipping Services Ltd. (ZIM) : Free Stock Analysis Report
 
CSX Corporation (CSX) : Free Stock Analysis Report
 
J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report
 
C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
 
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