Results: ZIM Integrated Shipping Services Ltd. Exceeded Expectations And The Consensus Has Updated Its Estimates

ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) just released its latest quarterly results and things are looking bullish. The company beat forecasts, with revenue of US$1.9b, some 8.6% above estimates, and statutory earnings per share (EPS) coming in at US$3.08, 60% ahead of expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for ZIM Integrated Shipping Services

After the latest results, the five analysts covering ZIM Integrated Shipping Services are now predicting revenues of US$7.68b in 2024. If met, this would reflect a huge 29% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with ZIM Integrated Shipping Services forecast to report a statutory profit of US$12.03 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$6.90b and earnings per share (EPS) of US$7.31 in 2024. There has definitely been an improvement in perception after these results, with the analysts noticeably increasing both their earnings and revenue estimates.

Despite these upgrades,the analysts have not made any major changes to their price target of US$17.45, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values ZIM Integrated Shipping Services at US$25.00 per share, while the most bearish prices it at US$12.20. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that ZIM Integrated Shipping Services' rate of growth is expected to accelerate meaningfully, with the forecast 65% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 16% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 0.3% per year. So it's clear with the acceleration in growth, ZIM Integrated Shipping Services is expected to grow meaningfully faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards ZIM Integrated Shipping Services following these results. On the plus side, they also lifted their revenue estimates, and the company is expected to perform better than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on ZIM Integrated Shipping Services. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for ZIM Integrated Shipping Services going out to 2026, and you can see them free on our platform here..

Even so, be aware that ZIM Integrated Shipping Services is showing 2 warning signs in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.