Latest news with #parcelvolume
Yahoo
22-05-2025
- Business
- Yahoo
ZTO Express (Cayman) Inc (ZTO) Q1 2025 Earnings Call Highlights: Navigating Growth Amidst ...
Parcel Volume: RMB8.5 billion, up 19.1% year over year. Adjusted Net Income: RMB2.3 billion, increased 1.6% year over year. Total Revenue: RMB10.9 billion, up 9.4% year over year. ASP for Core Express Delivery: Decreased 7.8% or RMB0.11. Total Cost of Revenue: RMB8.2 billion, increased 17.9%. Gross Profit: RMB2.7 billion, decreased 10.4%. Gross Profit Margin: 24.7%, decreased 5.4%. Income from Operations: RMB2.4 billion, increased 6.1%. Operating Cash Flow: RMB2.4 billion, increased 16.3%. Capital Expenditure: RMB2 billion for Q1. 2025 Full-Year Parcel Volume Guidance: RMB40.8 billion to RMB42.2 billion, a 20% to 24% increase year over year. Warning! GuruFocus has detected 1 Warning Sign with ZTO. Release Date: May 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. ZTO Express (Cayman) Inc (NYSE:ZTO) achieved a 19.1% year-over-year increase in parcel volume, reaching RMB8.5 billion in the first quarter of 2025. The company reported an adjusted net income of RMB2.3 billion, marking a 1.6% increase year over year. Retail parcel volume increased by 46% year over year, with reverse logistics volumes surging over 150%, indicating strong growth in these segments. ZTO Express (Cayman) Inc (NYSE:ZTO) successfully decreased unit transportation and sorting costs by RMB0.09 year over year through digitization and accountability metrics. The company maintained strong corporate cost efficiency, with SG&A expenses as a percentage of revenue decreasing to 4.7%. The ASP for core express delivery business decreased by 7.8% due to intensified competition, impacting revenue. Gross profit decreased by 10.4% to RMB2.7 billion, and the gross profit margin rate decreased by 5.4% to 24.7%. Price competition in the express delivery industry intensified, putting pressure on profit margins. The proportion of lower value parcels increased, further intensifying price competition and impacting revenue growth. Despite efforts to narrow the gap, ZTO Express (Cayman) Inc (NYSE:ZTO) was slightly slower than the industry in volume growth during the first quarter. Q: How does ZTO plan to achieve its volume growth target despite intense competition, and what are the implications for profit? A: (Huiping Yan, CFO) ZTO aims to maintain service quality while focusing on volume leadership and reasonable profit. The company has narrowed the gap between its volume growth and the industry average by incentivizing network partners. ZTO continues to focus on upgrading its revenue structure, particularly in retail and reverse logistics, which saw significant growth. The company plans to deepen cooperation with e-commerce platforms to sustain this growth. Q: What are the expectations for unit revenue and cost, and how is AI being integrated into ZTO's operations? A: (Huiping Yan, CFO) The decline in unit revenue is due to intense competition and an increase in lower-weight parcels. ZTO is focusing on cost efficiency, with significant reductions in transportation and sorting costs. AI is being used in sorting operations, route planning, and order allocation to improve efficiency and reduce errors. ZTO plans to further explore AI applications in last-mile delivery and other areas. Q: What progress has been made in direct linkage and cost optimization, and what are the expectations for the upcoming shopping festival? A: (Huiping Yan, CFO) ZTO is optimizing outlet layouts and promoting direct sorting and delivery to reduce last-mile costs and increase outlet earnings. The company expects significant cost savings and improved network partner earnings. For the upcoming shopping festival, ZTO anticipates high parcel volumes and plans to maintain competitive pricing while supporting network stability. Q: How does ZTO plan to handle the intensified price competition and its impact on ASP? A: (Huiping Yan, CFO) ZTO is focusing on maintaining high service quality and strategically adjusting pricing based on market conditions. The company is leveraging its cost efficiency initiatives to offset pricing pressures and plans to continue optimizing its revenue mix to sustain profitability. Q: What are ZTO's strategic priorities in response to current market challenges? A: (Meisong Lai, CEO) ZTO's strategic priority is to solidify its leadership in quality and scale while achieving reasonable profit levels. The company is committed to sustainable growth, reinforcing its network stability, and leveraging technology to enhance operational efficiency. ZTO aims to build an enduring enterprise that can adapt to changing market dynamics. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Globe and Mail
15-05-2025
- Business
- Globe and Mail
What's in the Cards for ZTO Express Stock in Q1 Earnings?
ZTO Express ZTO is scheduled to report first-quarter 2025 results on May 20, after market close. The Zacks Consensus Estimate for ZTO's earnings for the soon-to-be-reported quarter has remained flat at 47 cents per share over the past 60 days. Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $1.67 billion, which indicates a rise of 21% year over year. ZTO Express (Cayman) Inc. Price and EPS Surprise ZTO Express (Cayman) Inc. price-eps-surprise | ZTO Express (Cayman) Inc. Quote Given this backdrop, let's see how things have shaped up for ZTO Express this earnings season. High operating expenses are likely to have hurt the company's bottom-line performance in the to-be-reported quarter, as the company has a brief history of increasing expenses. Top-line growth is expected to have been driven by impressive parcel volumes, with the performance of the express delivery services unit likely to have been impressive. ZTO Express now expects its 2025 parcel volume guidance in the range of 40.8 billion-42.2 billion. The updated guidance represents an increase of 20-24% year over year. The ongoing trade war between the United States and China is also anticipated to have an impact on the to-be-reported quarter's results. An update on the same is also expected at the first-quarter conference. Moreover, revenues from ZTO's freight forwarding services unit are expected to have been hurt by freight demand weakness. An update on the ongoing trade war between the United States and China is also expected at the first-quarter conference. What Our Model Says About ZTO Our proven model does not conclusively predict an earnings beat for ZTO Express this time. 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. However, 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 Earnings ZTOExpress reported mixed fourth-quarter 2024 results. The company's earnings missed the Zacks Consensus Estimate, while revenues surpassed the mark. Quarterly earnings of 44 cents per share missed the Zacks Consensus Estimate of 46 cents. However, the bottom line improved year over year. Total revenues of $1.77 billion surpassed the Zacks Consensus Estimate of $1.65 billion and improved year over year. Q1 Performances of Other Transportation Companies United Airlines ' UAL first-quarter 2025 earnings per share (excluding 25 cents from non-recurring items) of 91 cents surpassed the Zacks Consensus Estimate of 75 cents. In the year-ago quarter, the Chicago-based airline reported a loss of 15 cents per share. Operating revenues of $13.21 billion fell marginally short of the Zacks Consensus Estimate of $13.22 billion. The top line increased 5.4% year over year despite the tariff-induced slowdown in domestic air travel demand. Passenger revenues (which accounted for 89.7% of the top line) rose 4.8% to $11.9 billion. The actual figure was short of our passenger revenue estimate of $12.5 billion. UAL flights transported 40,806 passengers in the first quarter, up 3.8% year over year. Delta Air Lines DAL reported first-quarter 2025 earnings (excluding 9 cents from non-recurring items) of 46 cents per share, which surpassed the Zacks Consensus Estimate of 40 cents. Earnings increased 2.2% on a year-over-year basis due to low fuel costs. Revenues in the March-end quarter were $14.04 billion, surpassing the Zacks Consensus Estimate of $13.81 billion and increasing 2.1% on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) rose 3.3% year over year to $13 billion. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. 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 >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Delta Air Lines, Inc. (DAL): Free Stock Analysis Report United Airlines Holdings Inc (UAL): Free Stock Analysis Report ZTO Express (Cayman) Inc. (ZTO): Free Stock Analysis Report
