ZIM Stock (NYSE: ZIM) - Fate Depends On Next Earnings On May 22

The global container shipping company Zim Integrated Shipping Services Ltd. (NYSE: ZIM) provides a dividend payout of $6.40 per share. The shipping company noted 2022 as a relatively profitable year, despite the shipping industry facing a noticeable decline and battling normalization. On March 13, ZIM released its Q4 2022 report, with earnings-per-share (EPS) profits of $3.44, beating an estimated $3.05.

ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) – Price Analysis

At press time, ZIM stock was trading at $16.90 with a drop of 1.00%; previous close and open were at $17.07 and $17.04, respectively. With an average volume of 4.86 Million shares, the market cap of the shipping company was $2.031 Billion. The 52-week change registered a drop of 72.95%; analysts have placed the price target at $25.16 with a 48.9% upside.

As per December 2022 data, the revenue dropped by 36.85% to $2.19 Billion, revenue per share was $104.67, and the quarterly revenue growth fell by 36.90%. The operating expenses increased by 54.45% to $510.00 Million, the net income suffered by 75.71% to $414.20 Million, and the net profit margin stumbled by 61.54% to $18.92. Returns on assets and equity gained 35.48% and 88.21%, respectively.

EBITDA dropped by 72.96% to $573.85 Million. The last earnings were released along with the Q4 report on March 13, 2023. The estimated revenue was $1.918 Billion, but it was reported to be $2.189 Billion, with a surprise of $271.494 Million and a rise of 14.16%. The subsequent earnings will be released on May 22, 2023, with an estimated $1.586 billion in revenue.

The company operates 15 vessels worldwide, of which 12 are car carriers. It ended 2022 with total liquidity of $4.6 Billion. They expect an EBITDA of $1.8 Billion to be around $2.2 Billion in 2023. However, this amount is considerably low from the adjusted EBITDA of full-year 2022 of approximately $7.5 Billion—a distribution of dividends worth $3.3 Billion, or 44% of the net income. However, critics argue that the estimates are too lofty.

In the earnings report, the company declared a dividend of $6.40 per share, making them pay $779 Million to shareholders. In 2022, ZIM paid $2.04 Billion or 44% of total net income in 2022.

ZIM Stock – Candle Exploration

The current price is close to the yearly low and has strong support. A downward-sloping trend line and EMA confirm the bearish trend. MACD is also giving similar indications. If the next earnings report turns out to be positive, there could be a rally. However, the price must first cross the trend line to move up. If that happens, the price could move to the EMA.

A hurdle stands at the $25.02 mark, and the price must cross it to increase. It could bounce off and consolidate, but clarity will be achieved after the earnings report scheduled on May 22, 2023.

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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing