• ZIM saw a 30% drop in first-quarter revenue to $1.40 billion, which came below the $1.46 billion consensus estimate polled by Koyfin.
• The company's carried volume fell 8% from last year to 866,000 twenty-foot equivalent units.
• The second quarter is expected to see a much bigger impact due to the ongoing Middle East crisis.

ZIM Integrated Shipping Services Ltd. (ZIM) on Wednesday reported wide misses in top- and bottom-line metrics for the first quarter, as the cargo shipping and logistics company was heavily impacted by the ongoing Middle East crisis, which resulted in weaker demand and lower freight rates.

At the time of writing, ZIM stock was down more than 1% in premarket trading.

Middle East Crisis

ZIM CEO Eli Glickman said that the conflict in the Persian Gulf sparked a sharp increase and significant volatility in bunkering costs, and highlighted that market fundamentals remain challenging across its main trade routes.

Glickman especially noted that while the impact on first-quarter (Q1) results was minimal, the second quarter is expected to see a much bigger impact due to the ongoing conflict.

ZIM Q1 Results In Focus

The company's carried volume in Q1 fell 8% from last year to 866,000 twenty-foot equivalent units (TEUs), while the average freight rate per TEU fell 26% to $1,310.

ZIM saw a 30% drop in Q1 revenue to $1.40 billion, which came below the $1.46 billion consensus estimate polled by Koyfin. Adjusted earnings before interest, taxes, depreciation, and amortization fell 60% to $313 million, below the $360 million estimate.

Net loss for the quarter was $86 million compared to a net income of $296 million last year. On a per-share basis, earnings were a loss of $0.71, wider than the $0.38-per-share expectation.

The company also said it was unable to pay a dividend for the quarter due to the loss.

What Retail Thinks About ZIM

On Stocktwits, retail sentiment about ZIM remained ‘bearish’ over the last 24 hours, with many users expecting the stock price to drop to the $10-$20 range.

ZIM stock has gained over 20% so far this year and is up nearly 32% over the past 12 months, outperforming the S&P 500.

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