ZIM Integrated Shipping Services Ltd. Just Missed EPS By 83%: Here's What Analysts Think Will Happen Next

The analysts might have been a bit too bullish on ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), given that the company fell short of expectations when it released its quarterly results last week. Results showed a clear earnings miss, with US$1.6b revenue coming in 5.9% lower than what the analystsexpected. Statutory earnings per share (EPS) of US$0.19 missed the mark badly, arriving some 83% below what was expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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After the latest results, the consensus from ZIM Integrated Shipping Services' six analysts is for revenues of US$6.99b in 2025, which would reflect an uneasy 18% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to dive 82% to US$3.08 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$7.01b and earnings per share (EPS) of US$3.67 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

See our latest analysis for ZIM Integrated Shipping Services

The consensus price target held steady at US$14.27, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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$19.00 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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 34% by the end of 2025. This indicates a significant reduction from annual growth of 5.1% 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 1.5% 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 the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. The consensus also reconfirmed their revenue estimates, suggesting that it is performing in line with expectations. Plus, our data suggests that ZIM Integrated Shipping Services is expected to perform worse 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. We have estimates - from multiple ZIM Integrated Shipping Services analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with ZIM Integrated Shipping Services (at least 1 which can't be ignored) , and understanding these should be part of your investment process.

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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.