Why Is ZTO Express Cayman (ZTO) Up 13% Since Last Earnings Report?

A month has gone by since the last earnings report for ZTO Express (Cayman) Inc. (ZTO). Shares have added about 13% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is ZTO Express Cayman due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.ZTO Q3 Earnings Up Year over YearZTO Express reported third-quarter 2025 earnings of 43 cents per share, which improved from the year-ago quarter. Total revenues of $1.66 billion improved year over year.Based on current market and operating conditions, ZTO Express lowered its 2025 parcel volume guidance to the range of 38.2 billion to 38.7 billion (reflecting 12.3-13.8% year-over-year growth) from the previously guided range of 38.8 billion to 40.1 billion (reflecting 14-18% year-over-year growth).Detailed Operational StatisticsRevenue from the core express delivery business increased 11.6% year over year, owing to 9.8% growth in parcel volume and a 1.7% increase in parcel unit price. Key account revenues, generated by direct sales organizations, rose 141.2% year over year owing to an increase in e-commerce return parcels.Revenue from freight forwarding services fell 7.4% year over year.Revenue from sales of accessories, which largely consisted of sales of digital thermal paper waybills, rose 0.5% year over year. Other revenues were derived mainly from financing services.Gross profit decreased 11.4% from the year-ago reported quarter. Gross margin rate fell to 24.9% from 31.2% in the year-ago period.Total operating expenses were RMB550.9 million (US$77.4 million) compared with RMB493.0 million in the year-ago period.ZTO’s board has approved its share repurchase program in November 2018 and made subsequent modifications, whereby the latest modification increased the aggregate value of shares that may be repurchased to $2.0 billion and extended the effective period through June 30, 2026.As of Sept. 30, 2025, ZTO had purchased an aggregate of 52,919,506 ADSs for $1.3 billion on the open market, including repurchase commissions. ZTO has $0.7 billion remaining funds available under its share repurchase program.ZTO Express exited the third quarter of 2025 with cash and cash equivalents of $1.31 billion compared with $1.85 billion at the end of the prior quarter.How Have Estimates Been Moving Since Then?Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.VGM ScoresAt this time, ZTO Express Cayman has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the second quintile for value investors.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.Outlook ZTO Express Cayman has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ZTO Express (Cayman) Inc. (ZTO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks