Uncovering Potential: ZTO Express (Cayman)'s Earnings Preview

ZTO Express (Cayman) ZTO is preparing to release its quarterly earnings on Tuesday, 2024-11-19. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect ZTO Express (Cayman) to report an earnings per share (EPS) of $0.41.

ZTO Express (Cayman) bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings Track Record

In the previous earnings release, the company beat EPS by $0.02, leading to a 6.11% increase in the share price the following trading session.

Here's a look at ZTO Express (Cayman)'s past performance and the resulting price change:

Stock Performance

Shares of ZTO Express (Cayman) were trading at $21.07 as of November 14. Over the last 52-week period, shares are down 4.57%. Given that these returns are generally negative, long-term shareholders are likely upset going into this earnings release.

Insights Shared by Analysts on ZTO Express (Cayman)

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on ZTO Express (Cayman).

Analysts have provided ZTO Express (Cayman) with 1 ratings, resulting in a consensus rating of Outperform. The average one-year price target stands at $30.0, suggesting a potential 42.38% upside.

Peer Ratings Overview

The following analysis focuses on the analyst ratings and average 1-year price targets of C.H. Robinson Worldwide, GXO Logistics and Hub Group, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• For C.H. Robinson Worldwide, analysts project an Neutral trajectory, with an average 1-year price target of $112.42, indicating a potential 433.55% upside.
• GXO Logistics is maintaining an Buy status according to analysts, with an average 1-year price target of $69.6, indicating a potential 230.33% upside.
• The consensus outlook from analysts is an Neutral trajectory for Hub Group, with an average 1-year price target of $47.25, indicating a potential 124.25% upside.

Peer Metrics Summary

The peer analysis summary presents essential metrics for C.H. Robinson Worldwide, GXO Logistics and Hub Group, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

ZTO Express (Cayman) ranks highest in Revenue Growth among its peers. It also leads in Gross Profit margin. However, it has the lowest Return on Equity. Overall, ZTO Express (Cayman) is positioned at the top in terms of Revenue Growth and Gross Profit, but at the bottom in Return on Equity compared to its peers.

Discovering ZTO Express (Cayman): A Closer Look

ZTO Express is China's largest express delivery company by parcel volume, with a volume share of 22.1% in 2022. It operates a network partner model where it provides line-haul transportation and sorting services, while its local network partners provide first-mile pickup and last-mile delivery services under the ZTO brand name. Headquartered in Shanghai, the company was founded in 2002 by Meisong Lai, who remains chair, CEO, and its major shareholder with 77% voting rights as of June 30, 2023. ZTO's strategic shareholder is leading China e-commerce company Alibaba Group with around an 11.7% interest.

ZTO Express (Cayman): A Financial Overview

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: ZTO Express (Cayman) displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 10.12%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: ZTO Express (Cayman)'s financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 24.35%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): ZTO Express (Cayman)'s financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 4.42%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): ZTO Express (Cayman)'s ROA stands out, surpassing industry averages. With an impressive ROA of 2.89%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: ZTO Express (Cayman)'s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.3.

To track all earnings releases for ZTO Express (Cayman) visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.