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ZTO Express (ZTO) Q3 Earnings In Line, Revenues Increase Y/Y

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·4 min read
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ZTO Express’ ZTO third-quarter 2021 earnings of 22 cents per share were in line with the Zacks Consensus Estimate. The bottom line declined year over year despite reduction in operating expenses.

Total revenues of $1,147 million increased in double digits year over year owing to rise in revenues at the core express delivery services unit (contributing 90.6% to the top line).

Detailed Operational Statistics

Revenues in Express delivery services jumped 14.4% year over year due to 23.3% increase in parcel volume and 7.2% decrease in parcel unit price, mainly driven by per parcel weight decline. Parcel volume market share was 20.8% in the reported quarter.

Freight forwarding services’ revenues declined 28.3% 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 inched up 1.9% 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 declined 6.3% year over year to RMB207.8 million. Selling, general and administrative expenses rose 4.2% with increase in compensation and benefits, and office expenditures.

Gross margin improved to 21.2% in the third quarter from 21% in the year-ago period. As of Sep 30, 2021, ZTO Express repurchased 36.07 million ADSs at an average price of $25.21.

2021 Outlook

ZTO Express now expects parcel volumes in the range of 22.2-22.7 billion in 2021, indicating a rise of 30.6-33.5% year over year. Previously, the company estimated parcel volumes in the band of 22.95-23.80 billion, which suggested an increase of 35-40%.

Liquidity

ZTO Express, carrying a Zacks Rank #4 (Sell), exited the third quarter with cash and cash equivalents of RMB 10.36 billion compared with RMB 16.41 billion at the end of third-quarter 2020.

Sectorial Snapshots

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

Gol Linhas Aereas Inteligentes GOL, carrying a Zacks Rank #4, incurred a loss (excluding $1.59 from non-recurring items) of 85 cents per share in the third quarter of 2021, in line with the Zacks Consensus Estimate. The amount of loss narrowed year over year.

Gol Linhas’ net operating revenues of $366.4 million surpassed the Zacks Consensus Estimate of $334.2 million. The top line surged significantly year over year, with passenger revenues (accounting for 92.3% of total revenues) rising more than 100%, thanks to continued recovery in air-travel demand in Brazil as vaccination rates increase.

Kirby Corporation KEX, carrying a Zacks Rank #3 (Hold), reported third-quarter 2021 earnings of 17 cents per share, missing the Zacks Consensus Estimate by 4 cents. Moreover, quarterly earnings plunged 63.04% year over year due to high costs.

Kirby’s total revenues of $598.9 million, however, surpassed the Zacks Consensus Estimate of $559.4 million and rose 20.6% year over year. The upside was driven by higher revenues at the marine transportation, and distribution and services segments.

Schneider National SNDR, sporting a Zacks Rank #1 (Strong Buy), reported third-quarter 2021 earnings of 62 cents per share, beating the Zacks Consensus Estimate of 51 cents. The bottom line surged 100% from the year-ago quarter’s (which bore the brunt of coronavirus-led woes) level. You can see the complete list of today's Zacks #1 Rank stocks here.

Schneider National’s operating revenues of $1,444.5 million surpassed the Zacks Consensus Estimate of $1,394.6 million and jumped 27.2% year over year. Revenues (excluding fuel surcharge) increased 25% to $1,330.1 million. The results benefited from higher revenues across all the segments.


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