ZTO Express Lags on Q4 Earnings Estimates, Beats on Revenues

ZTO Express (ZTO Quick QuoteZTO – Free Report) reported mixed fourth-quarter 2024 earnings, wherein 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.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Total revenues of $1.77 billion surpassed the Zacks Consensus Estimate of $1.65 billion and improved year over year.

Mr. Meisong Lai, founder, chairman and chief executive officer at ZTO, stated, “During the fourth quarter, ZTO maintained high quality of services and customer satisfaction, and achieved 9.7 billion of parcel volume and 2.7 billion of adjusted net income. To increase retail parcel volume was one of the key objectives to enhance revenue mix, and our average daily retail parcel volume exceeded 7 million which increased nearly 50% over the same fourth quarter last year.”

Detailed Operational Statistics

Revenues from the core express delivery business improved 22.4% year over year, owing to 11% growth in parcel volume and a 10.3% increase in unit price. KA revenues, including delivery fees from direct sales organizations established to serve core express KA customers, increased 275.9% as the proportion of higher-valued parcels, such as returned parcels from e-commerce platforms, continued to increase.

Revenues from freight forwarding services fell 11.7% year over year, owing to declining cross-border e-commerce pricing.

Revenues from sales of accessories, largely consisting of sales of thermal paper used for digital waybills’ printing, climbed 11.7% year over year. Other revenues were derived mainly from financing services.

Gross profit improved 20.2% from the year-ago reported quarter. Gross margin rate fell to 29.1% from 29.5% in the year-ago period.

Total operating expenses were RMB306.5 million ($42.0 million) compared with RMB373.2 million in the year-ago period.

ZTO Express exited the fourth quarter of 2024 with cash and cash equivalents of $1.84 billion compared with $1.66 billion at the end of the prior quarter.

ZTO’s board of directors has approved a semi-annual cash dividend of 35 cents per American depositary share (ADS) and ordinary share for the six months ended Dec. 31, 2024, to holders of its ordinary shares and ADSs as of the close of business on April 10, 2025. The dividend payment represents a 40% dividend payout ratio.

ZTO’s board approved its share repurchase program in November 2018 and has made subsequent changes so far. The latest announcement includes an increase in the aggregate value of shares to be repurchased to $2 billion and extended the effective period through June 30, 2025. As of Dec. 31, 2024, ZTO had purchased an aggregate of 50,546,707 ADSs for $1,222.0 million on the open market, including repurchase commissions. The remaining funds available under the share repurchase program are $778.0 million.

ZTO’s 2025 Guidance

ZTO Express expects its 2025 parcel volume in the range of 40.8 billion to 42.2 billion, reflecting 20-24% year-over-year growth.

ZTO’s Zacks Rank & Price Performance

Currently, ZTO Express carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ZTO shares have gained 9% so far this year, outperforming the transportation-services industry it belongs to.

ZTO Stock YTD Price Comparison

 

Image Source: Zacks Investment Research

Q4 Performances of Other Transportation Companies

Delta Air Lines

Delta Air Lines (DAL Quick QuoteDAL – Free Report) reported fourth-quarter 2024 earnings (excluding 56 cents from non-recurring items) of $1.85 per share, which surpassed the Zacks Consensus Estimate of $1.76. Earnings increased 44.5% on a year-over-year basis due to low fuel costs.

DAL’s revenues of $15.56 billion surpassed the Zacks Consensus Estimate of $14.99 billion and increased 9.4% on a year-over-year basis, driven by strong holiday travel demand. Adjusted operating revenues (excluding third-party refinery sales) totaled $14.44 billion, up 5.7% year over year. Passenger revenues, which accounted for 82.4% of total revenues, increased 5% year over year at $12.82 billion.

J.B. Hunt Transport Services

J.B. Hunt Transport Services (JBHT Quick QuoteJBHT – Free Report) reported fourth-quarter 2024 earnings per share of $1.53, which fell short of the Zacks Consensus Estimate of $1.62. However, the bottom line increased 4.1% on a year-over-year basis.  

JBHT’s total operating revenues of $3.15 billion narrowly beat the Zacks Consensus Estimate of $3.13 billion but declined 4.8% year over year. The decline was mainly due to lower fuel surcharge revenues and yield pressure in its Intermodal segment.

JBHT’s fourth-quarter 2024 operating revenues of $2.78 billion, excluding fuel surcharge revenue, decreased 2% from the year-ago reported quarter. Total operating income for the reported quarter increased 2% year over year to $207 million.

Alaska Air Group

Alaska Air Group, Inc. (ALK Quick QuoteALK – Free Report) reported solid fourth-quarter 2024results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Quarterly earnings per share of 97 cents outpaced the Zacks Consensus Estimate of 47 cents and improved more than 100% on a year-over-year basis. The reported figure exceeded the guided range of 40-50 cents.

ALK’s bottom line benefitted from solid revenue growth, cost and operational performance throughout the quarter and holiday travel periods. ALK also benefitted from a renegotiation of certain interest payments and favorability in its fourth-quarter tax rate.

ALK’s operating revenues of $3.53 billion beat the Zacks Consensus Estimate of $3.51 billion. The top line jumped 38.4% year over year, with passenger revenues accounting for 89.9% of the top line and increasing 37% owing to continued recovery in air-travel demand.