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ZTO Express (ZTO) Q2 Earnings Beat Estimates, Decline Y/Y

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ZTO Express’ (ZTO - Free Report) second-quarter 2021 earnings of 24 cents per share beat the Zacks Consensus Estimate by a penny. However, the bottom line declined year over year due to high costs.

Total revenues of $1,134.5 million increased in double digits year over year owing to rise in revenues at the core express delivery services unit (contributing 90.8% of the top line).

Detailed Operational Statistics

Revenues in Express delivery services jumped 18.1% year over year due to 25.6% increase in parcel volume and 5.9% decrease in parcel unit price, mainly driven by per parcel weight decline. Parcel volume market share was 21% in the reported quarter.

Freight forwarding services revenues declined 32.9% year over year with cross-border e-commerce demand and pricing returning to a normal level post recovery from the pandemic.. Also, revenues from sale of accessories dipped 2.2% 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-eps-surprise-chart | ZTO Express Cayman Inc. Quote


Total operating expenses of this China-based company climbed 77.8% year over year to RMB 218 million. Selling, general and administrative expenses rose 26.1% with increase in compensation and benefits, office expenditures, depreciation, and write-off of obsolete assets.

Gross margin deteriorated to 22.8% in the second quarter from 27.6% in the year-ago period. As of Jun 30, 2021, ZTO Express repurchased 17.52 million ADSs at an average price of $23.17.

ZTO Express still anticipates parcel volumes in the range of 22.95-23.80 billion for 2021, suggesting a 35-40% increase from the figure reported in 2020.

Liquidity

ZTO Express, carrying a Zacks Rank #3 (Hold), exited the second quarter with cash and cash equivalents of RMB 12.1 billion compared with RMB 14.2 billion at the end of 2020.

Sectorial Snapshots

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

Knight-Swift Transportation Holdings (KNX - Free Report) , carrying a Zacks Rank #2 (Buy), reported second-quarter 2021 earnings (excluding 6 cents from non-recurring items) of 98 cents per share, surpassing the Zacks Consensus Estimate of 87 cents. Total revenues of $1,315.7 million also outperformed the Zacks Consensus Estimate of $1,300.8 million. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

United Parcel Service (UPS - Free Report) , carrying a Zacks Rank #3, reported second-quarter 2021 earnings (excluding a penny from non-recurring items) of $3.06 per share, beating the Zacks Consensus Estimate of $2.75. Quarterly revenues of $23,424 million also outperformed the Zacks Consensus Estimate of $23,085.4 million.

Ryanair Holdings (RYAAY - Free Report) , carrying a Zacks Rank #4 (Sell), incurred a loss of $1.46 per share in the first quarter of fiscal 2022 (ended Jun 30, 2021), narrower than the Zacks Consensus Estimate of a loss of $1.50. Quarterly revenues of $446.4 million fell short of the Zacks Consensus Estimate of $459 million.