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SHANGHAI - ZTO Express (NYSE:ZTO) reported better-than-expected fourth quarter revenue on Wednesday.
The company’s shares were up 2.91% in premarket trading following the release.
The Chinese logistics company’s revenue growth outpaced parcel volume increases, signaling improved pricing power.
ZTO Express posted revenue of RMB12.92 billion ($1.77 billion) for the fourth quarter, surpassing analyst estimates of RMB11.71 billion. This represents a 21.7% increase compared to the same period last year. Parcel volume grew 11% YoY to 9.67 billion parcels.
However, adjusted earnings per American depositary share of RMB3.24 ($0.44) fell short of expectations for RMB3.28.
"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," said Meisong Lai, Founder, Chairman and CEO of ZTO Express.
The company’s core express delivery business saw revenue increase 22.4% YoY, driven by the 11% growth in parcel volume and a 10.3% increase in unit price. Key account revenue surged 275.9% as the proportion of higher-valued parcels like e-commerce returns continued to rise.
For the full year 2024, ZTO Express reported revenue of RMB44.28 billion ($6.07 billion), up 15.3% YoY. Adjusted net income grew 12.7% to RMB10.15 billion ($1.39 billion).
Looking ahead, ZTO Express expects parcel volume for 2025 to be between 40.8 billion and 42.2 billion, representing a 20% to 24% increase YoY.
The company also declared a semi-annual dividend of $0.35 per ADS, representing a 40% payout ratio.
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