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ZTO Express (ZTO) Q1 Earnings Meet, Revenues Increase Y/Y

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ZTO Express’ ZTO first-quarter 2022 earnings (excluding 3 cents from non-recurring items) of 21 cents per share was in line with the Zacks Consensus Estimate. The bottom line surged more than 40% year over year despite higher operating expenses and the impact of the Omicron-induced woes.

Total revenues of $1,246.8 million improved more than 20% year over year, owing to a rise in revenues at the core express delivery services unit (contributing 91.3% to the top line).

Detailed Operational Statistics

Revenues in Express delivery services jumped 26.6% year over year due to a 16.8% increase in parcel volume and an 8.5% increase in parcel unit price. Parcel volume market share was 21.6% in the reported quarter.

Freight forwarding services’ revenues declined 32.8% year over year, with cross-border e-commerce demand and pricing returning to a normal level post recovery from the pandemic. However, revenues from the sale of accessories climbed 8.4% year over year.

ZTO Express Cayman Inc. Price, Consensus and EPS Surprise

ZTO Express Cayman Inc. Price, Consensus and EPS Surprise
ZTO Express Cayman Inc. Price, Consensus and EPS Surprise

ZTO Express Cayman Inc. price-consensus-eps-surprise-chart | ZTO Express Cayman Inc. Quote

Total operating expenses of this China-based company escalated 8.5% year over year to RMB503.2 million. Selling, general and administrative expenses dipped 0.3% due to a decrease in share-based compensation expenses.

Gross margin improved to 20.5% in the first quarter from 16.9% in the year-ago period. As of Mar 31, 2022, ZTO Express repurchased 36.07 million ADSs at an average purchase price of $25.21.

Liquidity

ZTO Express, carrying a Zacks Rank #4 (Sell), exited the first quarter of 2022 with cash and cash equivalents of RMB9.90 billion compared with RMB9.72 billion at the end of December 2021.

Outlook

Due to uncertainty surrounding the prevalent pandemic, ZTO Express has reduced its expectation for parcel volumes in 2022 to 24.96-25.86 billion from 26.30-27.64 billion, anticipated previously. However, the guided range represents an increase of 12-16% year over year.

Sectorial Snapshots

Let’s glance through some other earnings reports from companies within the Zacks Transportation sector.

Expeditors International of Washington EXPD, carrying a Zacks Rank #3 (Hold), reported first-quarter 2022 earnings of $2.05 per share, which surpassed the Zacks Consensus Estimate of $1.77. The bottom line improved 22.75% year over year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Expeditors’ total revenues of $4,664.3 million outperformed the Zacks Consensus Estimate of $4,175.6 million and increased 38.9% year over year. Higher revenues across all units boosted the top line.

Old Dominion Freight Line ODFL, carrying a Zacks Rank #3, reported first-quarter 2022 earnings of $2.60 per share, which outpaced the Zacks Consensus Estimate of $2.37. The bottom line surged 52.9% year over year on higher revenues.

Old Dominion’s total revenues of $1497.3 million surpassed the Zacks Consensus Estimate of $1,454.1 million and increased 32.9% year over year. The uptick was backed by a 12% increase in LTL (Less-Than-Truckload) tons per day and a 17.4% rise in LTL revenue per hundredweight.


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ZTO Express Cayman Inc. (ZTO) : Free Stock Analysis Report
 
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