Earnings Preview: ZIM Integrated Shipping Services (ZIM) Q3 Earnings Expected to Decline

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings and revenues for ZIM Integrated Shipping Services in its upcoming quarterly report, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - ZIM is expected to report quarterly earnings of $1.67 per share, reflecting a significant year-over-year decrease of 82.1% [3]. - Revenues are projected to be $1.93 billion, down 30.1% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - ZIM's Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -24.32%, suggesting a bearish sentiment among analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a strong predictor being a positive Earnings ESP combined with a favorable Zacks Rank [10][12]. - ZIM currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat [12]. Historical Performance - In the last reported quarter, ZIM was expected to post earnings of $1.5 per share but only achieved $0.19, resulting in a surprise of -87.33% [13]. - Over the past four quarters, ZIM has beaten consensus EPS estimates three times [14]. Industry Context - Another company in the shipping industry, Star Bulk Carriers, is expected to report earnings of $0.28 per share, indicating a year-over-year decline of 60.6% [18]. - Star Bulk Carriers has a Zacks Rank of 4, making it difficult to predict an earnings beat, similar to ZIM's situation [20].