ZIM Integrated Shipping Shares Down After Q2 Results Miss Street Expectations

ZIM Integrated Shipping Services Ltd ZIM reported second-quarter sales growth of 44% year-over-year to $3.43 billion, missing the consensus of $3.62 billion.
The revenue increase was driven by elevated freight rates, offset by slightly lower volumes.
EPS was $11.07 for the quarter, missing the consensus of $12.84.
Carried volume in the second quarter was 856 thousand TEUs (-7% Y/Y). Average freight rate per TEU was $3,596 (+54% Y/Y).
Gross margin expanded by 219 bps to 53.5%. The operating income increased by 52.5% Y/Y to $1.76 billion, and the margin expanded by 287 bps to 51.4%.
The adjusted EBITDA was $2.10 billion (+57% Y/Y), and the margin expanded to 61% from 56% in 2Q21.
Adjusted EBIT was $1.76 billion (+52% YY), and the margin expanded by 200 bps to 51%.
Net cash generated from operating activities year-to-date totaled $3.37 billion, compared to $1.96 billion a year ago. ZIM's total cash position was $3.93 billion as of June 30, 2022.
Net leverage ratio of 0.1x at June 30, 2022, compared to 0.0x at December 31, 2021.
Dividend: ZIM declared a cash dividend of ~$571 million, or $4.75 per ordinary share, reflecting 30% of second quarter 2022 net income plus a one-time catch-up of 10% of Q1 2022 net income. The dividend will be paid on September 8, 2022, to holders of ZIM ordinary shares as of August 29, 2022.
"Despite the backdrop of various challenges, based on our strong performance in the year to date coupled with spot and contract rates that remain highly profitable, we are reaffirming our 2022 guidance, which would mark another year of record earnings and profitability," commented Eli Glickman, ZIM President & CEO.
FY22 Outlook reaffirmed: The company expects Adjusted EBITDA of $7.8 billion - $8.2 billion and Adjusted EBIT of $6.3 billion - $6.7 billion.
Price Action: ZIM shares are trading lower by 5.40% at $48.15 during the premarket session on Wednesday.

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