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

Atour Lifestyle (NASDAQ:ATAT) announced its earnings results on Thursday. 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 business 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 54.31%.

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 Up 1.5%

Shares of ATAT stock opened at $34.75 on Friday. The company’s 50-day moving average price is $33.22 and its 200-day moving average price is $35.58. 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 $4.78 billion, a price-to-earnings ratio of 17.12, a PEG ratio of 0.95 and a beta of 0.64.

Analysts Set New Price Targets

A number of brokerages recently weighed in on ATAT. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Atour Lifestyle in a research note on Thursday, August 13th. Zacks Research lowered Atour Lifestyle from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, July 14th. Eight investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $48.00.

Institutional Trading of Atour Lifestyle

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

About Atour Lifestyle

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.