Upcoming AWS Coverage on Expeditors International of Washington Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 6, 2016 / Active Wall St. announces its post-earnings coverage on ZTO Express (Cayman) Inc. (NYSE: ZTO). The Company reported its financial results for the third quarter fiscal 2016 (Q3 FY16) on November 28, 2016. The Shanghai, China-based Company's total revenue rose 66.6% y-o-y, while gross profit and net income surged 93.9% and 156.8% y-o-y, respectively. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of ZTO Express's competitors within the Air Delivery & Freight Services space, Expeditors International of Washington, Inc. (NASDAQ: EXPD), reported on November 08, 2016, its third quarter 2016 financial results. AWS will be initiating a research report on Expeditors International of Washington in the coming days.

Today, AWS is promoting its earnings coverage on ZTO; touching on EXPD. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=ZTO

http://www.activewallst.com/registration-3/?symbol=EXPD

Earnings Reviewed

During Q3 FY16, ZTO Express's total revenues surged to RMB2.35 billion ($352.86 million), from RMB1.41 billion in the year ago comparable quarter. The company attributed this quarterly revenue growth to increased parcel volume, which increased to 1.10 billion during Q3 FY16 from 732 million in the year ago comparable quarter.

For the reported period, the logistic Company's net income increased to RMB547.18 million ($82.05 million), from RMB213.15 million in the year ago same period. In Q3 FY16, the company reported net earnings attributed to ordinary shareholders of RMB0.78 ($0.12) per American Depository Share (ADS) versus RMB0.34 per ADS in Q3 FY15. Furthermore, the company reported adjusted net income of RMB547.43 million ($82.09 million) in Q3 FY16 compared RMB263.29 million in Q3 FY15.

Operating Metrics

ZTO Express's gross profit rallied during the reported quarter to RMB852.48 million ($127.84 million) from RMB439.70 million in the prior year's same quarter. Gross margin during Q3 FY16 increased to 36.2% of revenues from 31.1% of revenues in Q3 FY15, primarily due to economies of scale. The company's total operating expenses fell 18.3% y-o-y in Q3 FY16 to RMB111.02 million ($16.65 million) from RMB135.93 million in the last year's comparable quarter.

During Q3 FY16, income from operations came in at RMB741.45 million ($111.19 million), surging 144.1% from RMB303.77 million in the previous year's comparable quarter. Due to economies of scale, efficiency enhancement and lower share-based compensation expenses, operating margin improved to 31.5% of revenues in the reported quarter from 21.5% of revenues in Q3 FY15. Furthermore, adjusted EBITDA for Q3 FY16 was RMB833.15 million ($124.94 million) compared to RMB400.15 million in Q3 FY15.

Balance Sheet & Cash Flow

For Q3 FY16, ZTO Express's cash provided by operating activities was RMB831.71 million ($124.72 million) compared to RMB391.22 million in the prior year's same quarter. The company ended the quarter with cash and cash equivalents balance of RMB1.98 billion ($296.58 million), compared to RMB2.45 billion as of December 31, 2015.

Share Repurchase

In its earnings release, ZTO Express informed Wall Street that the Founder, Chairman, and CEO, Mr. Meisong Lai, and certain other directors of the Company intends to purchase ADS worth $20 million from the open market, as a testament to their confidence in the company's business and prospect.

IPO

On October 26, 2016, ZTE Express had announced pricing of its initial public offering of 72.1 million ADSs at $19.50 per ADS with a total offer size of approximately $1.4 billion, where each ADS represented one Class A ordinary share of the company. The ADSs debuted on New York Stock Exchange ("NYSE") on October 27, 2016.

The IPO is said to be this year's largest IPO launched in U.S. and also considered as the biggest by a Chinese company after the $25 billion IPO of e-commerce giant Alibaba Group Holding Limited (NYSE: BABA) in 2014.

Guidance

For Q4 FY16, ZTO Express expects adjusted net income to be in the range of RMB720 million ($108.0 million) to RMB750 million ($112.5 million), representing a 48.6% to 54.8% y-o-y growth.

Stock Performance

At the close of trading session on December 05, 2016, ZTO Express' stock price declined 2.53% to end the day at $13.48. A total volume of 3.17 million shares were exchanged during the session. The stock currently has a market cap of $10.42 billion and is trading at a PE ratio of 31.72.

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SOURCE: Active Wall Street