No. of Recommendations: 4
All this said, if ZIM can generate even a few more quarters close to the last few, and if they keep paying out half of their net income in dividends, at a market cap of $2b, it wouldn't take long for a bet on ZIM to work out nicely.
Chances are ZIM in not going to generate a few more quarters close to the last few, at least according the consensus of analysts that follow the company. Here's some data:
Quarterly analysts' earnings estimate:
Dec 2022
3.59
Quarterly reported earnings:
Sep 2022
9.66
Jun 2022
11.07
Mar 2022
14.19
Dec 2021
14.17
Annual analysts' earnings estimates:
Dec 2022
38.19
Dec 2023
2.91
Dec 2024
-3.34
ZIM really is a falling knife as far as future earnings are concerned. If however, someone believes that analysts' estimates are wrong and they have a good reason to think so, then backing up the truck will make sense to them. Otherwise, however cheap a company's shares may seem based on one year's earnings that is not a signal, in my opinion, to buy in the face of the expectation of negative earnings two years out.
