ZIM Integrated Shipping (ZIM) was poised for its third breakout of the year after a blowout Q3 earnings report.
The Israel-based container fleet operator reported earnings of $9.34 per share, up from a loss of nearly $19 per share a year ago. Revenue came in at $2.77 billion, vs. consensus views for $2.41 billion.
The company ratcheted up its guidance for earnings before interest, tax, depreciation and amortization to between $3.3 billion and $3.6 billion. Prior guidance topped out at $3 billion.
↑ XZIM President and Chief Executive Eli Glickman said the company's growing earnings power reflects "a strong rate environment, but also a testament to our diligent execution, upscaling our capacity and enhancing our cost structure."
Glickman said the company would receive the final four deliveries of 46 newly-built ships added to the fleet. Those include 28 LNG-powered container vessels.
The company's cash position increased by $441 million during the quarter, with cash and equivalents ending the quarter at $3.13 billion. In addition, ZIM said it would distribute $100 million as a special dividend, raising its total per share dividend for the quarter to $3.65.
ZIM shares swung 8.5% higher in premarket trade. The stock ended Tuesday in a buy zone narrowly above a 26.20 entry in a six-week cup base.
ZIM broke out of an earlier cup base in September. It then retreated after an analyst downgrade, and following the resolution of the dockworkers' strike in a deal that included a 61% pay increase.
Despite that pullback, ZIM ended Tuesday's session with a year-to-date gain of 171%.
ZIM holds an EPS Rating of 81 from IBD. Its Composite Rating is 82. The stock's Relative Strength line is trend to new highs, a bullish signal alongside a breakout.
Among other shippers, Star Bulk Carriers (SBLK) traded lower early Tuesday after its late-Monday report.
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