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ZTO Express Cayman (ZTO) Down 6% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for ZTO Express (Cayman) Inc. (ZTO - Free Report) . Shares have lost about 6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is ZTO Express Cayman due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
ZTO Q2 Earnings Up Year over Year
ZTO Express reported second-quarter 2026 earnings of 56 cents per share, which improved from the year-ago quarter. Total revenues of $2.14 billion also improved from the year-ago reported quarter.
Detailed Operational Statistics
Revenues from the core express delivery business increased 23% year over year, owing to a 6.5% growth in parcel volume and a 15.5% increase in parcel unit price. Within core express delivery revenue, key account revenue, generated by direct sales organizations, surged 63.6% year over year owing to increase in e-commerce return parcels.
Revenues from freight forwarding services grew 21.1% year over year. Revenues from sales of accessories, largely consisted of sales of thermal paper for digital waybills, fell 1.7% year over year. Other revenues were mainly derived from financing services.
Gross profit increased 26.8% from the year-ago reported quarter. Gross margin rate improved to 25.7% from 24.9% in the year-ago period.
Total operating expenses were RMB505.3 million ($74.5 million), compared with RMB469.3 million in the same period last year.
ZTO Express exited the first quarter of 2026 with cash and cash equivalents of $1.65 billion compared with $1.43 billion at the end of the prior quarter.
In March 2026, ZTO Express’ board also approved a new share repurchase program (the "New Program"), authorizing share repurchases of up to $1.5 billion of its shares over a 24-month period, effective from March 20, 2026 to March 20, 2028. In the second quarter of 2026, ZTO Express had repurchased an aggregate of 6,161,216 ADSs for $138 million (including repurchase commissions) under the New Program. The company is left with $1.36 billion of capacity under the authorisation.
Business Outlook
Based on current market and operating conditions, ZTO Express updates its 2026 parcel volume guidance. ZTO Express now expects parcel volume in the range of 40.8 billion to 42.4 billion (reflecting 6-10% year over year growth). The prior provided guidance was in the range of 42.37 billion to 43.52 billion.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
Currently, ZTO Express Cayman has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
ZTO Express Cayman has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
ZTO Express Cayman belongs to the Zacks Transportation - Services industry. Another stock from the same industry, Expeditors International (EXPD - Free Report) , has gained 1.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Expeditors International reported revenues of $3.5 billion in the last reported quarter, representing a year-over-year change of +32.1%. EPS of $2.03 for the same period compares with $1.34 a year ago.
For the current quarter, Expeditors International is expected to post earnings of $2.12 per share, indicating a change of +29.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Expeditors International. Also, the stock has a VGM Score of D.
View the Zacks #1 Rank List
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ZTO Express Cayman (ZTO) Down 6% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for ZTO Express (Cayman) Inc. (ZTO - Free Report) . Shares have lost about 6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is ZTO Express Cayman due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
ZTO Q2 Earnings Up Year over Year
ZTO Express reported second-quarter 2026 earnings of 56 cents per share, which improved from the year-ago quarter. Total revenues of $2.14 billion also improved from the year-ago reported quarter.
Detailed Operational Statistics
Revenues from the core express delivery business increased 23% year over year, owing to a 6.5% growth in parcel volume and a 15.5% increase in parcel unit price. Within core express delivery revenue, key account revenue, generated by direct sales organizations, surged 63.6% year over year owing to increase in e-commerce return parcels.
Revenues from freight forwarding services grew 21.1% year over year. Revenues from sales of accessories, largely consisted of sales of thermal paper for digital waybills, fell 1.7% year over year. Other revenues were mainly derived from financing services.
Gross profit increased 26.8% from the year-ago reported quarter. Gross margin rate improved to 25.7% from 24.9% in the year-ago period.
Total operating expenses were RMB505.3 million ($74.5 million), compared with RMB469.3 million in the same period last year.
ZTO Express exited the first quarter of 2026 with cash and cash equivalents of $1.65 billion compared with $1.43 billion at the end of the prior quarter.
In March 2026, ZTO Express’ board also approved a new share repurchase program (the "New Program"), authorizing share repurchases of up to $1.5 billion of its shares over a 24-month period, effective from March 20, 2026 to March 20, 2028. In the second quarter of 2026, ZTO Express had repurchased an aggregate of 6,161,216 ADSs for $138 million (including repurchase commissions) under the New Program. The company is left with $1.36 billion of capacity under the authorisation.
Business Outlook
Based on current market and operating conditions, ZTO Express updates its 2026 parcel volume guidance. ZTO Express now expects parcel volume in the range of 40.8 billion to 42.4 billion (reflecting 6-10% year over year growth). The prior provided guidance was in the range of 42.37 billion to 43.52 billion.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
Currently, ZTO Express Cayman has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
ZTO Express Cayman has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
ZTO Express Cayman belongs to the Zacks Transportation - Services industry. Another stock from the same industry, Expeditors International (EXPD - Free Report) , has gained 1.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Expeditors International reported revenues of $3.5 billion in the last reported quarter, representing a year-over-year change of +32.1%. EPS of $2.03 for the same period compares with $1.34 a year ago.
For the current quarter, Expeditors International is expected to post earnings of $2.12 per share, indicating a change of +29.3% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Expeditors International. Also, the stock has a VGM Score of D.