Israel-Based Shipper Set For Year’s 3rd Breakout After Hefty Dividend

Date:

  ZIM Integrated Shipping (ZIM) was poised for its third breakout of the year after a blowout Q3 earnings report.

The Israel-based container fleet operator reported earnings of $9.34 per share, up from a loss of nearly $19 per share a year ago. Revenue came in at $2.77 billion, vs. consensus views for $2.41 billion.

The company ratcheted up its guidance for earnings before interest, tax, depreciation and amortization to between $3.3 billion and $3.6 billion. Prior guidance topped out at $3 billion.





X



NOW PLAYING
RS Line vs. RS Rating: Which Is The Better Stock Indicator?



ZIM President and Chief Executive Eli Glickman said the company’s growing earnings power reflects “a strong rate environment, but also a testament to our diligent execution, upscaling our capacity and enhancing our cost structure.”

Glickman said the company would receive the final four deliveries of 46 newly-built ships added to the fleet. Those include 28 LNG-powered container vessels.

The company’s cash position increased by $441 million during the quarter, with cash and equivalents ending the quarter at $3.13 billion. In addition, ZIM said it would distribute $100 million as a special dividend, raising its total per share dividend for the quarter to $3.65.

Zim Shipping Stock

ZIM shares swung 8.5% higher in premarket trade. The stock ended Tuesday in a buy zone narrowly above a 26.20 entry in a six-week cup base.

ZIM broke out of an earlier cup base in September. It then retreated after an analyst downgrade, and following the resolution of the dockworkers’ strike in a deal that included a 61% pay increase.

Despite that pullback, ZIM ended Tuesday’s session with a year-to-date gain of 171%.

ZIM holds an EPS Rating of 81 from IBD. Its Composite Rating is 82. The stock’s Relative Strength line is trend to new highs, a bullish signal alongside a breakout.

Among other shippers, Star Bulk Carriers (SBLK) traded lower early Tuesday after its late-Monday report.

YOU MAY ALSO LIKE:

Why This IBD Tool Simplifies The Search For Top Stocks

Best Growth Stocks To Buy And Watch

IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today

Looking For Market Insights? Check Out Our IBD Live Daily Segment

These Are The 5 Best Stocks To Buy And Watch Now

 

Share post:

Popular

More like this
Related

What Purdy, Bosa learned about 49ers after missing out on playoffs

What Purdy, Bosa learned about 49ers after missing out...

Knicks’ Tyler Kolek named G League Winter Showcase Cup MVP

Knicks rookie Tyler Kolek was named the G League...

Brown states Kings fans ‘deserve better’ after loss to Pacers

Brown states Kings fans ‘deserve better' after loss to...

Video – Five Classic Inter Milan Goals Vs Como In Serie A Over The Years

Inter Milan take on Como in Serie A this...