ZTO Express Inc. (ZTO) shares plummeted 7.31% in early trading on Thursday following a disappointing fourth-quarter earnings report and a downgrade from JPMorgan. The Chinese logistics giant faced a significant sell-off as investors reacted to the company's financial performance and revised analyst outlook.

ZTO Express reported adjusted earnings of 2.90 yuan per share for the quarter ended December 31, 2024, falling short of the mean expectation of 3.33 yuan per share from four analysts. Despite showing year-over-year growth from 2.66 yuan per share in the same quarter last year, the earnings miss overshadowed the company's strong revenue performance. ZTO's revenue rose 21.7% to 12.92 billion yuan, surpassing analysts' projections of 11.76 billion yuan.

Adding to the negative sentiment, JPMorgan downgraded ZTO Express from Overweight to Neutral and reduced its price target to $23 from $25. This change in analyst stance likely contributed to the stock's sharp decline, as it may have prompted some investors to reassess their positions. Despite the current setback, it's worth noting that the overall analyst consensus on ZTO Express remains largely positive, with 18 out of 20 analysts maintaining either "strong buy" or "buy" recommendations prior to this event.