Back to top

Image: Bigstock

ZTO Express (ZTO) to Report Q1 Earnings: What's in Store?

Read MoreHide Full Article

ZTO Express (Cayman) (ZTO - Free Report) is scheduled to report first-quarter 2020 earnings on May 20, after market close.

The company has a decent earnings record, having delivered a positive surprise in three of the last four quarters while missing estimates in the remaining one. The average beat is 2.9%.

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

 

Moreover, the Zacks Consensus Estimate for first-quarter earnings has been revised 3.6% downward over the past 60 days.

Against this backdrop, let’s dig deeper into the factors that might have impacted this Shanghai-based courier company’s March-quarter performance.

ZTO Express’ performance in the to-be-reported quarter is expected to have been affected by the coronavirus-induced supply-chain disruptions. With the COVID-19 pandemic having keeping the Chinese economy crippled throughout the first three months of the year, the company’s performance in the period is likely to have been strained by the extended countrywide factory closures due to the virus outbreakthat dented freight volumes.

Factory shutdowns apart, commercial flight cancellations are likely to have weighed on the company’s first-quarter performance. Plagued by these headwinds, parcel volumes are likely to have been low, thereby hurting the express delivery services unit that contributes to bulk of the revenues at ZTO Express, which struck a deal with the Chinese e-commerce giant, Alibaba (BABA - Free Report) .

What the Zacks Model Unveils

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 a positive surprise. But that is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: ZTO Express has an Earnings ESP of 0.00% as the Most Accurate Estimate is in line with the Zacks Consensus Estimate of 27 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: ZTO Express carries a Zacks Rank #3, currently.
 

Highlights of Q4 Earnings  

In the last reported quarter, ZTO Express' earnings (excluding 13 cents from non-recurring items) of 30 cents per share (RMB 2.10) beat the Zacks Consensus Estimate by a penny  . Moreover, the bottom line rallied 25% year over year. Results benefited from impressive parcel volume growth.

Snapshots of Sectoral Releases

Even though transportation stocks struggled this earnings season so far due to coronavirus woes, the bottom-line results of a few companies surpassed estimates. Below we present two such industry players.

Atlas Air Worldwide (AAWW - Free Report) reported first-quarter earnings of $1.15 per share. Meanwhile, the Zacks Consensus Estimate was of a loss of 2 cents. This Zacks #1 Ranked transportation company’s revenues too trumped the consensus mark.

GasLog (GLOG - Free Report) delivered first-quarter earnings of 15 cents per share, beating the Zacks Consensus Estimate by 8 cents. The bottom line also compares favorably with earnings of 11 cents per share a year ago. Further, this Zacks Rank #2 transportation company’s top line outpaced the consensus estimate.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>




 

Published in