ZIM Integrated Stock Gains After Q3 Beat, Raised FY21 Outlook

ZIM Integrated Shipping Services Ltd ZIM reported third-quarter revenues of $3.14 billion compared to $1.01 billion in 3Q20, beating the consensus of $2.77 billion.
The increase was driven by the rise in revenues from containerized cargo, reflecting increases in freight rates and carried volume.
EPS of $12.16 beat the consensus of $9.25.
ZIM carried 884 thousand TEUs, an increase of 16% Y/Y. The average freight rate per TEU was $3,226 versus $1,176 for 3Q20.
The gross margin was 61% versus 22.4% in 3Q20. The Operating income increased to $1.86 billion from $188.81 million a year ago.
Adjusted EBITDA increased to $2.08 billion, from $262 million in 3Q20, and margin expanded to 66% from 26% a year ago.
ZIM generated cash from operating activities of $2.01 billion, compared to $245 million a year ago. Free cash flow of $1.72 billion.
ZIM's cash and cash equivalents were at $2.76 billion as of September 30, 2021. Net debt decreased to $22 million.
The company's cash dividend of $2.50 per ordinary share, to be paid on December 27, 2021, to holders of the ordinary shares as of December 16, 2021.
FY21 Outlook: ZIM increased its FY21 guidance, now expects to generate Adjusted EBITDA of $6.2 billion - $6.4 billion (prior view $4.8 billion - $5.2 billion) and Adjusted EBIT of $5.4 billion - $5.6 billion (prior $4.0 billion - $4.4 billion).
Price Action: ZIM shares are trading higher by 2.01% at $51.10 during the market session on Wednesday.

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