Why Zim Integrated Shipping Services Stock Slipped Today

Source Motley_fool

Key Points

  • The logistics company unveiled its latest set of quarterly figures.

  • Unfortunately for shareholders, it missed on both the top and bottom lines.

  • 10 stocks we like better than Zim Integrated Shipping Services ›

The stock of logistics specialist Zim Integrated Shipping Services (NYSE: ZIM) landed in negative territory on Wednesday. Investors reacted unhappily to the company's second-quarter earnings release published that morning. With its resulting 1.4% slump, Zim had a worse finish to the day than the S&P 500 index (which was down only 0.2%).

Second-quarter slumps

During the quarter, Zim's revenue fell by 15% year over year to almost $1.64 billion, on carried volume that decreased by 6%. Those declines were nothing compared to that for generally acceptable accounting principles (GAAP) net income, which eroded to $24 million ($0.19 per share) from Q2 2024's $373 million profit.

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Cargo ship plying its trade on the open sea.

Image source: Getty Images.

This meant a double miss for Zim, as those headline figures were well below the average analyst projections of $1.81 billion for revenue, and $1.22 per share for GAAP net income.

Global trade during the quarter was, of course, affected by the tariffs imposed by the Trump administration.

Zim put a positive spin on the situation, quoting its CEO Eli Glickman as saying: "Amid market disruptions and volatility, we continued to leverage our upscaled capacity and improved cost structure in Q2. In this highly uncertain market environment, our focus is controlling what we can to position Zim for sustainable and profitable growth over the long term."

A bit of a bright spot with guidance

Accordingly, Zim raised the lower end of its non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance for the entirety of 2025. For the period, it's now expecting that line item to hit $1.8 billion to $2.2 billion; previously the company guided for $1.6 billion to $1.8 billion.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Zim Integrated Shipping Services. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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