ZTO Express (Cayman) Inc. (02057) saw its stock plummet 5.12% in Wednesday's trading session following the release of its first-quarter 2025 financial results. The Chinese logistics giant's earnings fell short of analyst expectations, triggering a sell-off in the market.

According to the company's unaudited financial report, ZTO Express reported adjusted earnings of CNY2.44 per share for the quarter ended March 31, 2025. While this figure represents an increase from CNY1.75 per share in the same quarter last year, it fell below the mean expectation of CNY2.78 per share forecasted by four analysts. The company's revenue rose 9.4% to CNY10.89 billion, also missing the analysts' projected CNY11.93 billion.

Despite the earnings miss, ZTO Express reported some positive metrics. The company's Q1 adjusted net income reached RMB 2,300 million, with gross profit at RMB 2,689.2 million and adjusted EBITDA at RMB 3,686.7 million. However, these figures weren't enough to offset investor concerns about the company missing market expectations. ZTO Express reiterated its 2025 parcel volume guidance of 40.8 billion to 42.2 billion, maintaining its outlook despite the challenging quarter.