What's in the Cards for ZTO Express (ZTO) in Q3 Earnings?
ZTO Express ZTO is scheduled to report third-quarter 2023 results on Nov 16, after market close.
ZTO Express has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 21.95%.Notably, the Zacks Consensus Estimate for ZTO’s third-quarter 2023 earnings has been revised upward by 2.8% in the past 90 days.
ZTO Express (Cayman) Inc. Price and EPS Surprise
ZTO Express (Cayman) Inc. price-eps-surprise | ZTO Express (Cayman) Inc. Quote
Let’s see how things have shaped up for ZTO Express this earnings season.
Q3 Expectations
The Zacks Consensus Estimate for ZTO Express’third-quarter 2023 revenues is pegged at $1.45 billion, indicating 15.5% year-over-year growth. The top line is expected to have benefited from the strength of the express delivery services unit.
On the flip side, escalating operating expenses, primarily due to higher selling, general and administrative expenses (SG&A), continue to remain an overhang on ZTO’s bottom line. Increases in compensation, benefits and office expenditures are leading to higher SG&A expenses.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for ZTO Express this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
ZTO Express has an Earnings ESP of 0.00% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks.
Highlights of Q2
ZTO Express’ second-quarter 2023 earnings of 42 cents per share beat the Zacks Consensus Estimate of 37 cents and improved year over year.
Total revenues of $1,343.3 million missed the Zacks Consensus Estimate of $1,409 million. However, the top line improved year over year, owing to a rise in revenues at the express delivery services unit (contributing 92.3% to the top line).
Key Releases
Here, we discuss briefly the third-quarter 2023 earnings reports of a couple of stocks from the Zacks Services industry.
Schneider National, Inc.’s (SNDR) third-quarter2023 earnings of 20 cents per share missed the Zacks Consensus Estimate of 38 cents and declined 71.4% from the year-ago quarter’s levels. Operating revenues of $1,352 million lagged the Zacks Consensus Estimate of $1,396.5 million and fell 19.3% year over year. Revenues (excluding fuel surcharge) decreased 18% to $1,179.4 million.
C.H. Robinson Worldwide, Inc.’s (CHRW) third-quarter 2023 earnings of 84 cents per share beat the Zacks Consensus Estimate of 82 cents but declined 52.8% year over year. Total revenues of $4,341 million lagged the Zacks Consensus Estimate of $4,370 million and declined 27.8% year over year owing to lower pricing in the company’s ocean and truckload services.
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C.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report
ZTO Express (Cayman) Inc. (ZTO) : Free Stock Analysis Report
Schneider National, Inc. (SNDR) : Free Stock Analysis Report
