ZIM Integrated Shipping Services Ltd. (ZIM) saw its stock soar 11.17% in pre-market trading on Wednesday, following the company's record-breaking third-quarter 2024 financial results and raised full-year guidance.
The Israel-based container shipping company reported adjusted earnings per share of $9.34 for the third quarter, significantly higher than analyst estimates of $7.20. Revenue surged 117% year-over-year to $2.77 billion, beating expectations of $2.43 billion. This impressive performance was driven by a 12% increase in carried volume to 970,000 TEUs and a 118% jump in the average freight rate per TEU to $2,480.
Buoyed by the strong quarterly results, ZIM raised its full-year 2024 guidance for adjusted EBITDA to a range of $3.3 billion to $3.6 billion, up from the previous guidance of $2.6 billion to $3.0 billion. The company also increased its adjusted EBIT guidance to $2.15 billion to $2.45 billion, compared to the earlier forecast of $1.45 billion to $1.85 billion.
Adding to the positive news, ZIM declared an increased dividend of around $440 million, comprising a regular dividend of approximately $340 million (30% of Q3 net income) and a special dividend of around $100 million. The total dividend per share amounted to $3.65, with a regular dividend of $2.81 per share and a special dividend of $0.84 per share.
ZIM's strong performance and optimistic outlook can be attributed to its strategic investments in expanding its fleet with modern, cost-effective vessels, including 28 LNG-powered ships. These initiatives have enhanced the company's capacity and cost structure, positioning it well for profitable growth in the future.
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