ZACKSยท2025-08-21 18:46Core Insights - ZTO Express reported second-quarter 2025 earnings of 35 cents per share, a decline from the previous year, while total revenues increased to $1.65 billion [1][8] - The company revised its 2025 parcel volume guidance down to 38.8 billion to 40.1 billion, reflecting a year-over-year growth of 14-18%, from a prior estimate of 40.8 billion to 42.2 billion, which indicated 20-24% growth [1][8] Financial Performance - Revenues from the core express delivery business rose by 11% year over year, driven by a 16.5% increase in parcel volume, despite a 4.7% decrease in parcel unit price [3] - Gross profit decreased by 18.7% compared to the same quarter last year, with the gross margin rate falling to 24.9% from 33.8% [4][8] - Total operating expenses increased to RMB469.3 million ($65.5 million) from RMB405.3 million in the prior year [4] Operational Highlights - ZTO Express handled over 9.8 billion parcels in the second quarter, achieving an adjusted net income of 2.1 billion [2] - Retail volume growth remained strong, exceeding 50% compared to the previous year, positively impacting overall margins [2] - Revenue from KA (Key Accounts) increased significantly by 149.7% due to a rise in e-commerce return parcels [3] Cash Position - At the end of the second quarter, ZTO Express had cash and cash equivalents of $1.85 billion, up from $1.71 billion at the end of the previous quarter [5]