ZIM Integrated Shipping Services Q4 2021 Earnings Preview

• ZIM Integrated Shipping Services (NYSE:ZIM) is scheduled to announce Q4 earnings results on Wednesday, March 9th, before market open.
• The consensus EPS Estimate is $13.20 (+261.6% Y/Y) and the consensus Revenue Estimate is $3.37B (+147.8% Y/Y).
• Over the last 3 months, EPS estimates have seen 3 upward revisions and 0 downward. Revenue estimates have seen 3 upward revisions and 0 downward.

Comments

[Sartre]

I guess this sort of says it all:
" -- Average freight rate per TEU in fourth quarter was $3,630, a
year-over-year increase of 139%. Average freight rate per TEU in the full
year was $2,786, a year-over-year increase of 127% "
In all seriousness, is there anything in the financials that is not liked?

[Biological]

Also, NO net debt. Amazing flexibility going forward.

[randomBlokeOnline]

14.17$ pretty decent
Dividend of 50%, that's the good news. 17$ that's crazy

We also returned substantial capital to shareholders, highlighted by a full year dividend of $19.50 per share, reflective of 50% of our 2021 net income. In total, including our special dividend paid in September 2021, we will return to shareholders approximately $2.6 billion or $21.50

[RuleofLaw]

Personally, I hope ZIM sticks to the lower end of their stated dividend policy (30%) and uses the balance to buy back shares. This would be a much more tax efficient strategy.

We'll see soon.

[Trying to Make It]

@RuleofLaw I disagree, shares are pricey now.

[DividendInvestorLA]

@RuleofLaw Given how poorly stock buybacks work for investors (see FB) I hope they don't do that. I'd rather have the cash in my pocket.

[valuinvst]

@DividendInvestorLA You can just sell the stock for cash. The dividend will reduce the price dollar for dollar. Hopefully you get an uptick after payment but 25% of the payment goes to Israel in taxes so you have to earn that back before breaking even.

[SilverBandit]

My apologies to those who own shares and/or calls. I have calls, but I am the worst at options. So, yeah.

[valuinvst]

Anyone sticking around for the Div?

[jakied]

@valuinvst yes, I am.

[Azred]

@valuinvst Yes! Ever since the last and add on dips! The rest of the year ZIM has me!

[Assessing the Div]

@valuinvst Yep

[Biological]

It remains a goldilocks situation; we are more than 1/2 through 1Q22 and rates are still sky high. In some respects, high inflation is conducive to spending on fridges, microwaves, etc. as prices tomorrow will only go up. So, demand is there, regardless of the end of the COVID handouts/payouts. We are NOT in a deflationary environment where consumption is generally postponed. Just the opposite. Thus, volumes will be strong in 2022.

[DividendInvestorLA]

@Biological We are in a high inflation environment. Not quite hyper-inflation, but headed that way, and we better pray it never gets there.

That will lead to lowering of consumer spending as this high inflation is coupled with an oil shock.

This is VERY bad economic news and our governments don't have a clue what to do...

[Hallvar Sande]

Bought on 50$. Won't sell it until Price+Divs at least 140$. Tomorrow should declare +14$ div. Will see.

[Kurt Licherovsky]

Nice dividend announcement coming circa AVGO size, probably better. I'm a buyer of the disappearing dips, I'm paying up in the 71's. I'm gambling a price run up into the 75's. Rumors suggest an 90% skew towards high 77's. Maybe

[Trying to Make It]

..

[FlaYankee]

If this was a tech company such an earnings announcement would catapult the stock to the moon but shipping despite record earnings and revenue for many shipping companies trade at low single digit price to earnings ratio which is essentially rock bottom “deep value” valuations. IMO it seems much upside remains in many shippers as the market begins to recognize the sustainability of elevated revenue streams, the much improved balance sheets and the massive amounts of stock buybacks, pay down of debt and absolutely huge dividend payouts. My confidence level shows in the over 50% allocation to shipping stocks which has held up remarkably well despite widespread carnage on Wall Street.

[Ratteau]

@FlaYankee Dont forget dividend yield currently at about 15-20% on this baby. That amount considerably checks growth as if that money were reinvested into growth, you would probably see much higher valuations.

[Sartre]

@FlaYankee I am in complete agreement with your observations. Although my capital gains so far are 52% not including the 20% projected dividend. I believe, I should already be up at least 150%.

[depueman]

@FlaYankee
WSJ pouring on cold water.

www.wsj.com/...

[Assessing the Div]

It's go time, my dudes!