ZIM Integrated Shipping (NYSE:ZIM) stock is in the news Wednesday after the company provided an updated 2023 guidance to investors.
ZIM Integrated Shipping says that it now expects adjusted EBITDA of $1.2 billion to $1.6 billion for the full year of 2023. That’s lower than the shipping company’s prior guidance of $1.8 billion and $2.2 billion.
To go along with this, ZIM Integrated Shipping is also expecting an adjusted EBIT loss of $500 million to $100 million for the year. Its previous outlook had adjusted positive EBIT ranging from $100 million to $500 million.
What’s Behind the Lowered Guidance?
According to ZIM, the lowered guidance is the result of “continued weakness in freight rates.” The company says this has been hitting all of its trading routes and that the Transpacific has been hit hardest.
Eli Glickman, President and CEO of ZIM Integrated Shipping, said the following about the news:
“Near-term container shipping market conditions continue to be challenging, with demand expected to remain muted for the remainder of the year. While our second quarter results are broadly in-line with our expectations, we no longer anticipate an improvement in freight rates in the second half of 2023, consistent with seasonality, as previously assumed.”
Despite the decreased outlook for 2023, shares of ZIM stock are still up slightly as of Wednesday morning. Also, traders will get to see the company’s latest earnings results on Aug. 16, 2023.
Investors looking for more of the most recent stock market news for Wednesday will want to keep reading!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
