ZIM Integrated Shipping Services Ltd. Just Recorded A 33% EPS Beat: Here's What Analysts Are Forecasting Next

A week ago, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. ZIM Integrated Shipping Services delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting US$2.8b-15% above indicated-andUS$9.34-33% above forecasts- respectively Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts 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$6.34b in 2025. This implies a chunky 15% reduction in ZIM Integrated Shipping Services' revenue over the past 12 months. Statutory earnings per share are forecast to plummet 84% to US$1.95 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$6.10b and earnings per share (EPS) of US$1.36 in 2025. So it seems there's been a definite increase in optimism about ZIM Integrated Shipping Services' future following the latest results, with a considerable lift to the earnings per share forecasts in particular.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$17.76, suggesting that the forecast performance does not have a long term impact on the company's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic ZIM Integrated Shipping Services analyst has a price target of US$28.00 per share, while the most pessimistic values it at US$10.50. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 12% by the end of 2025. This indicates a significant reduction from annual growth of 13% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 1.0% per year. So it's pretty clear that ZIM Integrated Shipping Services' revenues are expected to shrink 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. Fortunately, they also upgraded their revenue estimates, although ZIM Integrated Shipping Services'they are still expected to trail 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for ZIM Integrated Shipping Services going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for ZIM Integrated Shipping Services (of which 1 makes us a bit uncomfortable!) 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.