Zim Integrated Shipping reported fourth-quarter results that topped Wall Street estimates Wednesday and announced a huge dividend. Zim stock jumped Wednesday, hitting a record high but closing just below an add-on buy point.
The Israel-based container-freight fleet operator reported earnings of $14.17 per diluted share, beating FactSet analysts' expectations for $13.19. Revenue jumped over 150% to $3.47 billion, also topping analyst expectations of $3.37 billion. Carried volume rose 7% year over year.
Zim entered into charter agreements for 36 new vessels including 28 liquefied natural gas dual-fuel container ships during the year. The ships are due to be delivered to Zim throughout 2023 and 2024. Officials said the ships could eventually account for 40% of operated capacity.
Looking ahead, Zim sees 2022 EBITDA of $7.1 billion to $7.5 billion, up from 2021's $6.6 billion.
The company will pay out a dividend of $17 a share for 2021. The dividend will be paid out April 4 to shareholders of record as of March 23.
Zim Stock Fundamentals
Shares popped 6.3% to 75.14 on the stock market today, after hitting a record 77.45 soon after the open. Zim stock is in a profit-taking zone after breaking out of a cup-with-handle base with a 57.07 entry point.
The stock briefly cleared a 75.30 entry in a three-weeks-tight pattern. This is a follow-on chart structure, which means it is a good place for existing shareholders to add to positions. It is not a place where buyers should jump into new positions.
Zim stock debuted on the NYSE in January 2021. Since its launch, Zim has steadily climbed as supply chain issues took center stage amid the Covid-19 pandemic and a massive shift in consumer spending.
Zim is the top-ranked stock in IBD's Transportation-Ship group. It has a perfect Composite Rating of 99 and an EPS Rating of 83. The Composite Rating compiles scores on key fundamental and technical metrics: earnings and sales growth, profit margins, return on equity, and relative price performance. Investors should focus on stocks with a Composite Rating of 90 or higher.
Other top shipping stocks were also rising Wednesday. Star Bulk Carriers reversed from a record high to fall 2.3%. Danaos Corp., which owns a stake in ZIM, rallied 2.8%.
Follow Gillian Rich on Twitter at @GillianRich_ for investing news and more.
