Zto Express Cayman Inc ADR Down 6.78% To $22.54 After Earnings Beat

Friday, November 17, 2023 - Zto Express Cayman Inc ADR (ZTO) reported upside earnings and downside revenues.

Zto Express Cayman Inc ADR's earnings came in at an EPS of $0.39 per share, 3.00% higher than estimates for an EPS of $0.38 per share. The firm's earnings are up 18% since reporting $0.33 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Consensus estimates for Zto Express Cayman Inc ADR revenue averaged out to $1.4 billion, with the business missing on those expectations with reported third-quarter revenue of $1.2 billion. The $116 million (9%) negative revenue surprise led to negative 1% growth year-over-year as the firm reported revenue of $1.3 billion in its year-ago quarter. The higher earnings growth compared to revenue points to Zto Express Cayman Inc ADR improving its profit margin.

The stock is down 6.78% to $22.54 after the report.

Despite Zto Express Cayman Inc ADR reporting a decline in revenues, earnings increased signaling a rise in profit margins.

Wall Street Analysts had an average rating of Strong Buy on the stock prior to the report.

InvestorsObserver gives the stock a Bearish Sentiment score at the moment based on recent trading.

Zto Express Cayman Inc ADR has performed a little above average during the past few months. Before the report, Zto Express Cayman Inc ADR received a Long-Term Technical Rank by InvestorsObserver of 51, putting it in the top half of stocks. The firm set a 52-week high on May 18, 2023 at $30.05 and set a 52-week low on November 21, 2022 at $20.67.

ZTO Express (Cayman) Inc is a comprehensive logistics service enterprise with express delivery as its core business and integrating cross-border, express, commercial, cloud warehouse, aviation, finance, intelligence, media, and other ecological sectors.