ZIM (ZIM) Down 3.2% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for ZIM Integrated Shipping Services (ZIM). Shares have lost about 3.2% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is ZIM due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for ZIM Integrated Shipping Services Ltd. before we dive into how investors and analysts have reacted as of late.

ZIM Misses on Q1 Earnings

ZIM Integrated Shipping Services Ltd. reported first-quarter 2026 loss per share of 72 cents, which was wider than the Zacks Consensus Estimate loss of 22 cents. In the year-ago reported quarter, ZIM reported earnings per share of $2.45.

Revenues of $1.39 billion missed the Zacks Consensus Estimate of $1.59 billion and declined 30.4% from the year-ago quarter. This was due to the decrease in freight rates and carried volume.

Carried volume in the first quarter decreased 8% year over year to 866 thousand TEUs (twenty-foot equivalent units). Average freight rate per TEU in the first quarter decreased 26% year over year to $1,310.

Adjusted EBITDA for the first quarter was $313 million, down 60% on a year-over-year basis. Adjusted EBITDA margins for the first quarter of 2026 fell to 22% from 39% in the year-ago quarter.

Adjusted EBIT loss for the first quarter was $5 million compared with adjusted EBIT of $463 million in the first quarter of 2025. Adjusted EBIT margins in the first quarter of 2026 fell to 0% from 23% in the year-ago quarter.

Liquidity

ZIM exited the first quarter with cash and cash equivalents of $921.6 million compared with $1.05 billion at the end of the previous quarter.

ZIM generated $263 million of cash from operating activities in the first quarter of 2026. Net capital expenditures totaled $28 million for the reported quarter. Free cash flow was $235 million.

ZIM’s First-Quarter 2026 Dividend

Based on its dividend policy and in light of the net loss recorded in the first quarter of 2026, ZIM’s board of directors has declared not to pay any dividend to shareholders on account of its first-quarter results.

Deal With Hapag-Lloyd

On Feb. 16, 2026, ZIM announced that it had inked a deal with Hapag-Lloyd, per which ZIM would be purchased by Hapag-Lloyd for $35.00 per share in cash. The deal was unanimously approved by ZIM's board of directors and approved by shareholders at a special meeting held on April 30, 2026. Subject to satisfaction of customary closing conditions, including approvals by various regulatory authorities, among them the State of Israel, pursuant to the requirements of the Special State Share (the "Golden Share"), the deal is anticipated to be completed in the fourth quarter of 2026.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

At this time, ZIM has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock has a score of A on the value side, putting it in the top 20% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

ZIM has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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This article originally published on Zacks Investment Research (zacks.com).

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