ZTO Express (NYSE:ZTO) stock dropped 4.8%, at $23.65 in early trading, on softer second quarter results, with revenues shy of Wall Street analyst forecasts.
Revenue came in at $1.34 billion, up from $1.29 billion a year ago but short of expectations of $1.39 billion. The Chinese express delivery firm reported adjusted earnings of $0.42 per share, above Street expectations of $0.39.
Market share meanwhile expanded to 23.5%.
"Amidst an overall soft economic environment, we achieved solid performance results in the second quarter,” CEO Meisong Lai said in a statement.
“We continued to widen our lead in industry volume, market share and net profit while maintaining high levels of services quality and customer satisfaction.”
Looking ahead, ZTO reiterated its expectation for 2023 parcel volume to be between $4.02 billion and $4.15 billion, a 20% to 24% increase from 2022. The company also expects volume market share growth of at least 1.5%.