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 full-year results and things are looking bullish. The company beat expectations with revenues of US$8.4b arriving 2.7% ahead of forecasts. Statutory earnings per share (EPS) were US$17.82, 7.0% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. 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

Taking into account the latest results, the current consensus, from the six analysts covering ZIM Integrated Shipping Services, is for revenues of US$6.64b in 2025. This implies a painful 21% reduction in ZIM Integrated Shipping Services' revenue over the past 12 months. Statutory earnings per share are expected to tumble 78% to US$3.96 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$6.77b and earnings per share (EPS) of US$4.04 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of US$15.71, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic ZIM Integrated Shipping Services analyst has a price target of US$22.00 per share, while the most pessimistic values it at US$9.50. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying 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. We would highlight that revenue is expected to reverse, with a forecast 21% annualised decline to the end of 2025. That is a notable change from historical growth of 11% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 3.1% annually for the foreseeable future. The forecasts do look bearish for ZIM Integrated Shipping Services, since they're expecting it to shrink faster than the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also made no changes to their revenue estimates, implying the business is not expected to experience any major impacts to the current trajectory in the near term, even though it is expected to trail the wider industry. The consensus price target held steady at US$15.71, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts 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 , and 1 of those can't be ignored...

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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.