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What Awaits ZIM Integrated Shipping (ZIM) in Q1 Earnings?

ZIM Integrated Shipping Services ZIM is slated to release first-quarter 2023 results on May 22, before market open.

The Zacks Consensus Estimate for first-quarter earnings has increased 25% over the past 60 days. ZIM Integrated Shipping, which went public in February 2021, surpassed the Zacks Consensus Estimate for earnings in three of the last four quarters (missed once). The average beat is 14.38%.

Against this backdrop, let’s look at the factors that might have shaped ZIM’s March-quarter performance.

We expect the company’s bottom-line performance to have been hit by escalated voyage operating expenses. High fuel costs are also likely to have played spoilsport.

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Supply-chain disruptions, lower shipments and slowdown in freight demand might have dented ZIM’s performance in the quarter under review.

On a brighter note, the positive sentiment surrounding the containership market is a tailwind for ZIM Integrated Shipping and might have aided its top line in the soon-to-be-reported quarter.

Earnings Whispers

Our proven model does not predict an earnings beat for ZIM Integrated Shipping this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: ZIM Integrated Shipping has an Earnings ESP of -120.75%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: ZIM Integrated Shipping has a Zacks Rank #3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Q1 Performance of Some Other Transportation Companies

Norfolk Southern Corporation’s NSC first-quarter 2023 earnings (excluding $1.28 from non-recurring items) of $3.32 per share beat the Zacks Consensus Estimate of $3.15 and improved 13.3% year over year.

Railway operating revenues were $3,132 million in the quarter under review, beating the Zacks Consensus Estimate of $3,099.8 million. NSC’s top line increased 7.5% year over year, with all key segments, including merchandise and coal, registering improvements in revenues. Total revenue per unit rose 8% year over year, driven by higher fuel surcharges and pricing. Income from railway operations climbed 1% year over year to $1,098 million.

CSX Corporation’s CSX first-quarter 2023 earnings of 48 cents per share beat the Zacks Consensus Estimate of 42 cents and improved 23.1% year over year.

Total revenues of $3,706 million outperformed the Zacks Consensus Estimate of $3,599.1 million. CSX’s top line increased 9% year over year on the back of solid volume growth in merchandise and coal, higher fuel surcharge, and pricing gains. Overall revenues per unit increased 9%.

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CSX Corporation (CSX) : Free Stock Analysis Report

Norfolk Southern Corporation (NSC) : Free Stock Analysis Report

ZIM Integrated Shipping Services Ltd. (ZIM) : Free Stock Analysis Report

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