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ZTO Express (ZTO) Q1 Earnings Top, Revenues Miss, View Up
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ZTO Express’ (ZTO - Free Report) first-quarter 2023 earnings of 34 cents per share beat the Zacks Consensus Estimate of 24 cents and improved year over year.
Total revenues of $1,308.1 million missed the Zacks Consensus Estimate of $1,379.3 million. However, the top line improved year over year, owing to a rise in revenues at the express delivery services unit (contributing 93.4% to the top line).
ZTO Express (Cayman) Inc. Price, Consensus and EPS Surprise
Revenues in Express delivery services jumped 16.1% year over year due to a 20.5% increase in parcel volume. Parcel volume market share grew by 1.8 points to 23.4% in the reported quarter.
Freight forwarding services’ revenues declined 41.8% year over year, with cross-border e-commerce demand and pricing declining due to the weak global economy.
Revenues from sales of accessories (largely consisting of sales of thermal paper used for digital waybills' printing) climbed 30.8%, in line with parcel volume growth. Other revenues were derived mainly from financing services.
Total operating expenses of this China-based company were RMB 573.0 million compared with RMB 503.2 million in the year-ago quarter. Selling, general and administrative expenses increased 27.2% on the back of the rise in employees' compensation and benefits.
The gross margin rate improved to 28.1% from 20.5% in the year-ago period.
Liquidity & Buyback
ZTO Express exited the first quarter of 2023 with cash and cash equivalents of RMB 9.55 billion compared with RMB 11.69 billion at December 2022-end.
As of Mar 31, 2023, ZTO Express purchased 38,250,449 ADSs at an average purchase price of $25.18, including repurchase commissions.
The company’s board of directors has further approved changes to its existing share repurchase program, increasing the value of shares to be repurchased from $1 billion to $1.5 billion and extending the effective time by one year through Jun 30, 2024. The company anticipates funding the repurchases from its existing cash balance.
2023 View
ZTO Express has updated its expectation for parcel volumes to the range of 29.27-30.24 billion (prior view: 28.78-29.75 billion) in 2023. The updated guidance represents an increase of 20-24% year over year.
Currently, ZTO Express carries a Zacks Rank #4 (Sell).
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), and a 17% decline in revenue per load in Truckload (JBT). Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%.
JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel prices and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.
Alaska Air Group, Inc. (ALK - Free Report) reported first-quarter 2023 loss of 62 cents per share, wider than the Zacks Consensus Estimate of a loss of 48 cents. In the year-ago quarter, ALK incurred a loss of $1.33 per share.
ALK’s operating revenues of $ 2,196 million missed the Zacks Consensus Estimate of $2,202.5 million. The top line jumped 31% year over year, with passenger revenues accounting for 90.3% of the top line and increasing 31% owing to continued recovery in air-travel demand.
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ZTO Express (ZTO) Q1 Earnings Top, Revenues Miss, View Up
ZTO Express’ (ZTO - Free Report) first-quarter 2023 earnings of 34 cents per share beat the Zacks Consensus Estimate of 24 cents and improved year over year.
Total revenues of $1,308.1 million missed the Zacks Consensus Estimate of $1,379.3 million. However, the top line improved year over year, owing to a rise in revenues at the express delivery services unit (contributing 93.4% to the top line).
ZTO Express (Cayman) Inc. Price, Consensus and EPS Surprise
ZTO Express (Cayman) Inc. price-consensus-eps-surprise-chart | ZTO Express (Cayman) Inc. Quote
Detailed Operational Statistics
Revenues in Express delivery services jumped 16.1% year over year due to a 20.5% increase in parcel volume. Parcel volume market share grew by 1.8 points to 23.4% in the reported quarter.
Freight forwarding services’ revenues declined 41.8% year over year, with cross-border e-commerce demand and pricing declining due to the weak global economy.
Revenues from sales of accessories (largely consisting of sales of thermal paper used for digital waybills' printing) climbed 30.8%, in line with parcel volume growth. Other revenues were derived mainly from financing services.
Total operating expenses of this China-based company were RMB 573.0 million compared with RMB 503.2 million in the year-ago quarter. Selling, general and administrative expenses increased 27.2% on the back of the rise in employees' compensation and benefits.
The gross margin rate improved to 28.1% from 20.5% in the year-ago period.
Liquidity & Buyback
ZTO Express exited the first quarter of 2023 with cash and cash equivalents of RMB 9.55 billion compared with RMB 11.69 billion at December 2022-end.
As of Mar 31, 2023, ZTO Express purchased 38,250,449 ADSs at an average purchase price of $25.18, including repurchase commissions.
The company’s board of directors has further approved changes to its existing share repurchase program, increasing the value of shares to be repurchased from $1 billion to $1.5 billion and extending the effective time by one year through Jun 30, 2024. The company anticipates funding the repurchases from its existing cash balance.
2023 View
ZTO Express has updated its expectation for parcel volumes to the range of 29.27-30.24 billion (prior view: 28.78-29.75 billion) in 2023. The updated guidance represents an increase of 20-24% year over year.
Currently, ZTO Express carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Transportation Companies
J.B. Hunt Transport Services, Inc.’s (JBHT - Free Report) first-quarter 2023 earnings of $1.89 per share missed the Zacks Consensus Estimate of $2.04 and declined 17.5% year over year.
JBHT’s total operating revenues of $3,229.58 million also lagged the Zacks Consensus Estimate of $3,434.4 million and fell 7.4% year over year. The downfall was due to declines in the volume of 25% in Integrated Capacity Solutions (ICS), 5% in Intermodal (JBI) and 17% in Final Mile Services (FMS), and a 17% decline in revenue per load in Truckload (JBT). Revenue declines in ICS, JBI, FMS and JBT were partially offset by Dedicated Contract Services revenue growth of 13%.
JBHT’s total operating revenues, excluding fuel surcharges, decreased 10.2% year over year.
Delta Air Lines’ (DAL - Free Report) first-quarter 2023 earnings (excluding 82 cents from non-recurring items) of 25 cents per share missed the Zacks Consensus Estimate of 29 cents. Volatile fuel prices and unfavorable weather conditions led to this downtick. DAL reported a loss of $1.23 per share a year ago, dull in comparison to the current scenario, as air-travel demand was not so buoyant then.
DAL reported revenues of $12,759 million, which missed the Zacks Consensus Estimate of $12,767.4 million. Driven by higher air-travel demand, total revenues increased 36.49% on a year-over-year basis.
Alaska Air Group, Inc. (ALK - Free Report) reported first-quarter 2023 loss of 62 cents per share, wider than the Zacks Consensus Estimate of a loss of 48 cents. In the year-ago quarter, ALK incurred a loss of $1.33 per share.
ALK’s operating revenues of $ 2,196 million missed the Zacks Consensus Estimate of $2,202.5 million. The top line jumped 31% year over year, with passenger revenues accounting for 90.3% of the top line and increasing 31% owing to continued recovery in air-travel demand.