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Is a Beat in the Cards for ZTO Express' (ZTO) Q4 Earnings?

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ZTO Express’ (ZTO - Free Report) is scheduled to report fourth-quarter 2022 results on Mar 15, 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 15.62%.

ZTO Express (Cayman) Inc. Price and EPS Surprise

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 are shaping up for ZTO Expressthis earnings season.

Q4 Expectations

The Zacks Consensus Estimate for ZTO Express’ fourth-quarter 2022 revenues is pegged at $1.34 billion, indicating a 7.3% year-over-year decline. The downside is expected to be partially offset by an increase in parcel volume and parcel unit price.

On the flip side, escalating operating expenses, primarily due to higher selling, general and administrative expenses (SG&A), continue to hurt ZTO’s bottom line. Increases in compensation, benefits and office expenditures are leading to higher SG&A expenses. Notably, the Zacks Consensus Estimate for ZTO’s fourth-quarter 2022 earnings has been revised downward by 7.9% in the past 90 days.

What Our Model Says

Our proven model predicts 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, which is the case here, as you can see below. 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 +7.25% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks.

Highlights of Q3

ZTO Express’ third-quarter 2022 earnings of 33 cents per share beat the Zacks Consensus Estimate of 26 cents. The bottom line increased year over year despite higher operating expenses and the impact of Omicron-induced woes.

Total revenues of $1,257.5 million improved year over year owing to a rise in revenues at the express delivery services unit (contributing 90.6% to the top line).

Here is the fourth quarter of 2022 earnings reports of stocks from the Zacks Services industry.

Expeditors International of Washington’s (EXPD - Free Report) fourth-quarter 2022 earnings of $1.38 per share missed the Zacks Consensus Estimate of $2.09. The bottom line decreased 48% year over year. Total revenues of $3,441.52 million lagged the Zacks Consensus Estimate of $4,173.4 million and decreased 36% year over year.

Schneider National, Inc. (SNDR - Free Report) fourth-quarter 2022 earnings of 64 cents per share beat the Zacks Consensus Estimate of 61 cents but declined 16% from the year-ago quarter’s levels. Operating revenues of $1,561.7 million lagged the Zacks Consensus Estimate of $1,678.5 million and fell 1% year over year. Revenues (excluding fuel surcharge) decreased 7% to $1,347.7 million.

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