ZIM Integrated Shipping Q3 Earnings Exceed Expectations

ZIM Integrated Shipping Services Ltd ZIM reported third-quarter FY22 sales growth of 3% year-on-year to $3.23 billion, beating the consensus of $3.18 billion.
Carried volume in Q3 was 842 thousand TEUs, a year-over-year decrease of 5%.
The operating margin was 47.8%, and the operating income was $1.5 billion.
The company held $4.4 billion in cash and equivalents as of September 30, 2022.
Adjusted EBITDA decreased 7% Y/Y to $1.93 billion with an adjusted EBITDA margin of 60%.
Net debt as of September 2022 was $250 million.
EPS of $9.66 beat the analyst consensus of $9.54.
ZIM's Board declared a cash dividend of approximately $354 million, or $2.95 per ordinary share, payable on December 7, 2022, to holders of ZIM ordinary shares as of November 29, 2022.
"Driven by macroeconomic and geopolitical uncertainties, the near-term outlook for container shipping has shifted and the normalization in freight rates has begun," said CEO Eli Glickman.
Outlook: ZIM Integrated Shipping reduced its FY22 adjusted EBITDA forecast to $7.4 billion - $7.7 billion (prior view $7.8 billion - $8.2 billion).
Price Action: ZIM shares are trading higher by 1.61% at $26.79 on the last check Wednesday.

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