Atour Lifestyle (NASDAQ:ATAT) Posts Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Atour Lifestyle (NASDAQ:ATAT) announced its quarterly earnings results on Thursday, August 20th. The company reported $0.59 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.57 by $0.02, Zacks reports. The business had revenue of $513.74 million during the quarter, compared to the consensus estimate of $484.56 million. Atour Lifestyle had a net margin of 16.75% and a return on equity of 55.00%.

Here are the key takeaways from Atour Lifestyle’s conference call:

• Second-quarter revenue rose 41.4% year over year to RMB 3.419 billion, driven by hotel network expansion, supply-chain development, and strong retail growth.
• Atour Planet retail revenue increased 63.2% to RMB 1.575 billion, with comforter GMV up more than 80%; management raised full-year retail revenue growth guidance to 40%.
• The company opened 101 hotels in the quarter, reaching 2,175 operating hotels and an 811-hotel pipeline, while maintaining its full-year opening target and approximately 80 closure guidance. Premium concepts also showed strong unit economics, including RevPAR above RMB 450 for Atour Origin and RMB 1,000 for SAVHE.
• Hotel performance remained mixed, with mature-hotel RevPAR down 3.0% year over year to RMB 336.8, while adjusted net profit margin declined 1.3 percentage points to 16.0% and EBITDA margin fell 1.2 points to 23.5%.
• Atour ended the quarter with RMB 3.9 billion in cash and RMB 3.7 billion in net cash, and reported more than US$150 million in cumulative share repurchases alongside continued dividends.

Atour Lifestyle Stock Down 0.2%

Shares of ATAT traded down $0.08 during trading on Friday, reaching $33.43. 624,048 shares of the company traded hands, compared to its average volume of 1,064,726. Atour Lifestyle has a twelve month low of $30.77 and a twelve month high of $43.17. The stock has a market cap of $4.60 billion, a PE ratio of 16.47, a price-to-earnings-growth ratio of 0.87 and a beta of 0.66. The stock has a 50-day simple moving average of $33.53 and a 200-day simple moving average of $34.38.

Analyst Ratings Changes

A number of research analysts recently commented on ATAT shares. Weiss Ratings upgraded Atour Lifestyle from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, October 8th. Zacks Research cut Atour Lifestyle from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, July 14th. HSBC assumed coverage on Atour Lifestyle in a research note on Wednesday, October 7th. They set a “buy” rating and a $39.70 target price for the company. Finally, Wall Street Zen upgraded Atour Lifestyle from a “hold” rating to a “buy” rating in a research report on Sunday, September 13th. Eight investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, Atour Lifestyle currently has a consensus rating of “Moderate Buy” and an average price target of $46.62.

About Atour Lifestyle

Atour Lifestyle Holdings Limited is a hospitality and lifestyle company headquartered in Shanghai, China. Founded in 2013, the company operates a portfolio of hotel brands designed to combine accommodation with localized cultural and lifestyle experiences.

Its hotel offerings include the Atour, Atour S, Atour Light, Atour X and other brand concepts serving different customer preferences and travel occasions. Atour also develops complementary products and services, including bedding, pillows, mattresses and other lifestyle goods sold through its hotels and online retail channels.

Atour primarily serves the Chinese market, with hotels located across major cities and other destinations in mainland China.