Breaking News
0

ZTO Express (ZTO) Q2 Earnings Beat On Parcel Volume Growth

By Zacks Investment ResearchStock MarketsAug 15, 2019 10:38PM ET
www.investing.com/analysis/zto-express-zto-q2-earnings-beat-on-parcel-volume-growth-200455880
ZTO Express (ZTO) Q2 Earnings Beat On Parcel Volume Growth
By Zacks Investment Research   |  Aug 15, 2019 10:38PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

ZTO Express (Cayman) Inc.’s (NYSE:ZTO) second-quarter 2019 adjusted earnings of 25 cents per share (RMB 1.74) beat the Zacks Consensus Estimate by a penny. Moreover, the bottom-line improved year over year. Results benefited from impressive parcel volume growth. Notably, the company’s parcel volume expansion was higher than the industry average by 18.5 percentage points.

Following the earnings beat and its year-over-year improvement, shares of the company rose 2.1% in after-hours trading on Aug 15.

The top line also rose substantially year over year to $790 million (RMB 5,423.6 million), driven by a 30% year-over-year surge in revenues from the company’s express delivery services unit.


Segmental revenues were boosted by a 46.8% jump in parcel volume to 3,106.6 million. Freight forwarding services (acquired during the fourth quarter of 2017) contributed 6.5% to the top line. Further, the 39.8% rise in revenues from sales of accessories was primarily owing to increased sales of thermal paper used for printing digital waybills.

Meanwhile, total operating expenses at this China-based company inched up 2.8% to RMB 275.8 million. Increase in selling, general and administrative (SG&A) expenses induced this rise in operating expenses. Apart from other factors, rise in salary and accrued bonus escalated SG&A expenses during the reported quarter. Gross margin contracted to 32.6% in the second quarter compared with 34.7% a year ago. This downside was due to expansion in parcel volumes, volume incentives and cost productivity gain. As of Jun 30, 2019, ZTO Express repurchased 7.5 million ADSs at average price of $17.32 per ADS.

2019 Guidance Intact

The company reiterates its outlook for full-year parcel volumes and adjusted net income. Parcel volumes are anticipated in the range of 11.51-11.93 billion for the current year, implying a 35-40% improvement from the year-ago reported figure. Additionally, adjusted net income is predicted in the band of RMB 4.8-RMB 5.2 billion, indicating an ascent of 14.3-23.8%.

Zacks Rank & Key Picks

ZTO Express carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are GATX Corporation (NYSE:GATX) , Herc Holdings Inc. (NYSE:HRI) and SkyWest, Inc. (NASDAQ:SKYW) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GATX boasts an impressive earnings history, having outperformed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 18.2%. Meanwhile, shares of Herc and SkyWest have rallied more than 51% and 20%, respectively, so far this year.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>



SkyWest, Inc. (SKYW): Free Stock Analysis Report

GATX Corporation (GATX): Free Stock Analysis Report

Herc Holdings Inc. (HRI): Free Stock Analysis Report

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

Original post

Zacks Investment Research
ZTO Express (ZTO) Q2 Earnings Beat On Parcel Volume Growth
 
ZTO Express (ZTO) Q2 Earnings Beat On Parcel Volume Growth

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email