ZIM Integrated Shipping Services' Q4 Earnings to Decline 65.91% YOY, Q1 Estimates Revised Down

ZIM Integrated Shipping Services fell 1.14% to $15.57, trailing the S&P 500's 0.4% loss and the Dow's 0.98% drop. The company is expected to report EPS of $1.05, down 65.91% from the prior-year quarter, and revenue of $1.69 billion, down 12.42%. The full-year Zacks Consensus Estimates are calling for earnings of $2.22 per share and revenue of $6.71 billion.

ZIM Integrated Shipping Services (ZIM) experienced a 1.14% drop to $15.57 on Friday, trailing the broader market's performance. The S&P 500 fell by 0.4% while the Dow dropped by 0.98%. The company is expected to report earnings per share (EPS) of $1.05, a 65.91% decline from the same quarter last year. Revenue is anticipated to be $1.69 billion, down 12.42% compared to the prior year. For the full year, Zacks Consensus Estimates project earnings of $2.22 per share and revenue of $6.71 billion, indicating significant decreases of 87.54% and 20.37% respectively [1].

Analysts have been particularly bearish on ZIM, with six research firms assigning a consensus rating of "Strong Sell." Four analysts rated the stock with a "sell" rating, while two gave a "hold" rating. The average 12-month price target among analysts is $14.82 [1]. Recent analyst ratings include Clarkson Capital downgrading ZIM from a "buy" to a "neutral" rating, and Bank of America reducing its price target from $16.00 to $12.80 with an "underperform" rating [1].

Institutional investors have also been adjusting their stakes in ZIM. Raymond James Financial Inc. purchased a new position worth $1,771,000, while HighTower Advisors LLC boosted its stake by 20.5% during the fourth quarter. Swiss National Bank increased its ownership by 8.2%, and Commonwealth Equity Services LLC raised its stake by 46.8% during the same period [1]. Despite these adjustments, institutional investors own 21.42% of the company's stock.

ZIM's financial performance remains a focus for investors. The company reported $2.45 EPS for the quarter, beating analyst estimates by $0.56. Revenue was $2.01 billion, also surpassing expectations of $1.84 billion. However, the company's debt-to-equity ratio of 1.16 and quick ratio of 1.10 indicate some financial strain [1].

ZIM's valuation metrics also suggest a discount relative to industry averages. The Forward P/E ratio is 7.43, compared to the industry average of 8.99. The PEG ratio is 0.28, indicating a potential for slower earnings growth compared to the industry average of 1.05 [2].

Given the recent analyst ratings and financial performance, ZIM remains a stock to monitor for investors seeking potential opportunities in the transportation sector. However, the significant declines in earnings and revenue estimates highlight the challenges the company faces in the coming quarters.

References:
[1] https://www.marketbeat.com/instant-alerts/zim-integrated-shipping-services-ltd-nysezim-receives-consensus-recommendation-of-strong-sell-from-analysts-2025-07-06/
[2] https://www.nasdaq.com/articles/zim-integrated-shipping-services-zim-stock-sinks-market-gains-what-you-should-know-0