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What's in the Cards for ZTO Express' (ZTO) Q1 Earnings?

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ZTO Express’ (ZTO - Free Report) is scheduled to report first-quarter 2023 results on May 17, 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 13.71%.

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 have shaped up for ZTO Expressthis earnings season.

Q1 Expectations

The Zacks Consensus Estimate for ZTO Express’ first-quarter 2023 revenues is pegged at $1.38 billion, indicating 10.63% year-over-year growth. The top line is expected to have benefited from 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 bother ZTO’s bottom line. Increases in compensation, benefits and office expenditures lead to higher SG&A expenses. Notably, the Zacks Consensus Estimate for ZTO’s first-quarter 2023 earnings has remained unchanged in the past 90 days.

What Our Model Says

Our proven model does not conclusively predict 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. But that’s not the case here. 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 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks.

Highlights of Q4

ZTO Express’ fourth-quarter 2022 earnings (excluding 1 cent from non-recurring items) of 37 cents per share beat the Zacks Consensus Estimate of 35 cents. The bottom line increased 8.8% year over year despite higher operating expenses. Total revenues of $1,431.2 million also beat the Zacks Consensus Estimate of $1,340.9 million but decreased 1.1% year over year, despite the increase in parcel volumes.

Here are the first-quarter 2023 earnings reports of stocks from the Zacks Services industry.

Schneider National, Inc. (SNDR - Free Report) first-quarter 2023 earnings of 55 cents per share beat the Zacks Consensus Estimate of 45 cents but declined 3.5% from the year-ago quarter’s levels. Operating revenues of $1,428.7 million lagged the Zacks Consensus Estimate of $1,488.7 million and fell 11.8% year over year. Revenues (excluding fuel surcharge) decreased 14% to $1,249.5 million.

C.H. Robinson Worldwide (CHRW - Free Report) reported disappointing first-quarter 2023 results wherein both earnings and revenues missed the Zacks Consensus Estimate.

Quarterly earnings (excluding 2 cents from non-recurring items) of 98 cents per share missed the Zacks Consensus Estimate of $1.01 and declined 52.2% year over year due to unfavorable pricing in ocean and truckload services. Total revenues of $4611.7 million lagged the Zacks Consensus Estimate of $4780 million and declined 32.3% year over year.


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C.H. Robinson Worldwide, Inc. (CHRW) - free report >>

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Schneider National, Inc. (SNDR) - free report >>

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