ZTO Express Reports Third Quarter 2024 Financial Results
SHANGHAI, Nov. 19, 2024 — ZTO Express (Cayman) Inc. (NYSE: ZTO and SEHK: 2057), a leading express delivery company in China, announced its unaudited financial results for the third quarter ended September 30, 2024.
Key Financial Metrics (Q3 2024)
| Metric | Q3 2024 (USD) | Q3 2023 (USD) | YoY Change | Consensus Estimates | Difference |
|---|---|---|---|---|---|
| Total Revenue | $1,521.2M | $1,300.0M | +17.6% | $10.44B | Beat |
| Net Income | $339.0M | $334.8M | +1.3% | N/A | N/A |
| Adjusted Net Income | $340.2M | $333.7M | +2.0% | N/A | N/A |
| Earnings per ADS (Basic & Diluted) | $0.42 / $0.41 | $0.42 / $0.41 | +2.4% / +2.1% | $2.84 | Miss |
| Adjusted EBITDA | $532.9M | $490.4M | +8.7% | N/A | N/A |
ZTO Express delivered strong year-over-year revenue growth driven by increased parcel volume and improved service quality. Despite a competitive environment, the company enhanced its financial performance with a significant increase in total revenue and stable earnings.
Key Developments and Operational Highlights
- Parcel volume rose by 15.9% to 8.72 billion.
- Operating cash flow increased to $443.5 million for the quarter.
- The number of sorting hubs expanded to 95, enhancing capability in handling higher volumes efficiently.
- Strategic initiatives in reverse logistics and premium services drove a 40% year-over-year increase in retail volume.
Executive Commentary
Mr. Meisong Lai, Founder and CEO, noted the company's success in enhancing volume mix and strengthening retail relationships, contributing positively to revenue and margins. Ms. Huiping Yan, CFO, highlighted efforts to optimize costs and maintain high service quality amid a challenging macroeconomic landscape, expecting continued leadership in the express delivery sector.
Dividend and Share Repurchase Program
No new dividends or share repurchase programs were announced during this earnings release.
Forward Guidance
ZTO revised its full-year parcel volume target to between 33.7 billion and 33.9 billion, reflecting an 11.6% to 12.3% increase year-over-year, with management cautioning a cautious market outlook.
Stock Price Movement
Following the earnings release, ZTO's stock price experienced a 1.15% increase, signaling investor confidence in the company's strategic direction and financial performance.
In summary, ZTO Express continues to deliver on its strategic initiatives, achieving strong operational performance and maintaining its leadership position in the express delivery market despite broader economic challenges.
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