Atour Lifestyle (NASDAQ:ATAT) Releases Earnings Results, Beats Estimates By $0.02 EPS

Atour Lifestyle (NASDAQ:ATAT) issued its quarterly earnings data on Thursday, August 20th. The company reported $0.59 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.57 by $0.02, Zacks reports. The company had revenue of $513.74 million for the quarter, compared to analyst estimates 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 Trading Down 0.8%

Shares of ATAT traded down $0.26 during midday trading on Friday, hitting $34.36. 292,563 shares of the company’s stock traded hands, compared to its average volume of 1,099,200. The stock has a market capitalization of $4.72 billion, a price-to-earnings ratio of 16.93, a price-to-earnings-growth ratio of 0.95 and a beta of 0.63. Atour Lifestyle has a 1 year low of $30.77 and a 1 year high of $43.17. The firm’s fifty day moving average is $33.64 and its 200-day moving average is $35.38.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Caitong International Asset Management Co. Ltd boosted its holdings in Atour Lifestyle by 651.7% in the third quarter. Caitong International Asset Management Co. Ltd now owns 669 shares of the company’s stock worth $25,000 after acquiring an additional 580 shares in the last quarter. Atlas Capital Advisors Inc. purchased a new stake in shares of Atour Lifestyle during the fourth quarter worth about $37,000. Mcguire Capital Advisors Inc. acquired a new position in shares of Atour Lifestyle during the fourth quarter valued at about $49,000. Quarry LP acquired a new position in shares of Atour Lifestyle during the third quarter valued at about $66,000. Finally, Smartleaf Asset Management LLC purchased a new position in shares of Atour Lifestyle in the 4th quarter valued at approximately $71,000. 17.79% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several brokerages have issued reports on ATAT. Weiss Ratings cut Atour Lifestyle from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday. Zacks Research cut Atour Lifestyle from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, July 14th. Seven equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $48.00.

Atour Lifestyle Company Profile

Atour Lifestyle Holdings Co, Ltd. operates as a hospitality and lifestyle company offering a range of lodging and accommodation services in China. The company’s core business includes the development, operation and management of boutique hotels and serviced apartments under its Atour Hotel and Ankora brands. These properties cater primarily to the mid- to upscale segment, delivering a blend of comfort, design-focused interiors and localized services tailored to both business and leisure travelers.

In addition to room offerings, Atour Lifestyle provides a suite of ancillary services designed to enhance guest experiences.