Why Is ZTO Express Cayman (ZTO) Up 5.2% Since Last Earnings Report?
It has been about a month since the last earnings report for ZTO Express (Cayman) Inc. (ZTO). Shares have added about 5.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is ZTO Express Cayman due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
ZTO Express Q2 Earnings Up Y/Y
ZTO Express’ second-quarter 2024 earnings of 47 cents per share improved year over year. Total revenues of $1.475 billion improved year over year.
Detailed Operational Statistics
Revenues from the core express delivery business improved 10.4% year over year, owing to 10.1% growth of parcel volume and stable parcel unit price. KA revenues, including delivery fees from direct sales organizations established to serve core express KA customers, increased 73.9% as the proportion of higher-value customers continued to increase.
Revenues from freight forwarding services fell 2.4% year over year.
Revenues from sales of accessories, largely consisting of sales of thermal paper used for digital waybills' printing, rose 24.1% year over year. Other revenues were mainly derived from financing services.
Gross profit improved 9.6% from the year-ago reported quarter on the back of revenue growth and cost productivity gain. Gross margin rate fell to 33.8% from 33.9% in the year-ago period.
Total operating expenses came in at RMB405.3 million ($55.8 million) compared with RMB425.7 million in the year-ago period.
ZTO Express exited the second quarter of 2024 with cash and cash equivalents of RMB10.54billion compared with RMB 12.58 billion at the first-quarter end.
2024 Guidance
ZTO Express continues to expect parcel volumes for 2024 in the range of 34.73-35.64 billion. The guidance represents an increase of 15-18% year over year.
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.
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