ZIM Integrated Shipping Services (NYSE: ZIM) stock jumped about 5% in pre-market trading Monday after the company reported fourth-quarter earnings that beat Wall Street expectations.
The global container shipping firm posted adjusted earnings of $4.66 per share for the fourth quarter, significantly beating the consensus estimate of $2.83. Revenue for the period rose to $2.17 billion, topping forecasts of $1.91 billion and marking an 80% increase from the same quarter last year.
ZIM also set a record for carried volume, reaching 982,000 TEUs in Q4—up 25% year-over-year. For the full year 2024, the company saw a 14% volume growth to 3,751,000 TEUs—more than double the overall market growth of approximately 6%.
Eli Glickman, ZIM’s President & CEO, made the following comments on the results,
“We are pleased and proud with the Company’s outstanding performance in 2024, during which we delivered record carried volume as well as exceptional profitability.”
In addition, ZIM issued a financial outlook for 2025, expecting adjusted EBITDA to range between $1.6 billion and $2.2 billion. The company also forecasts adjusted EBIT between $350 million and $950 million. This guidance assumes that trade conditions in the Red Sea will not stabilize until at least the second half of the year.
Moreover, ZIM announced a Q4 dividend of $3.17 per share, bringing the total dividend for 2024 to $7.98 per share, which equals about 45% of its full-year net income.
Following the earnings release, Jefferies reaffirmed its ‘Hold’ rating on ZIM Integrated Shipping Services (NYSE: ZIM) shares and maintained its price target of $18.00.
