Atour Lifestyle (NASDAQ:ATAT) Posts Quarterly Earnings Results, Misses Expectations By $0.08 EPS

Atour Lifestyle (NASDAQ:ATAT) issued its quarterly earnings results on Tuesday. The company reported $0.48 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.56 by ($0.08), Zacks reports. The company had revenue of $511.48 million during the quarter, compared to the consensus estimate of $480.12 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:

• Third-quarter net revenue rose 30.5% to CNY 3.4 billion, while adjusted net profit increased 26.2% to CNY 615 million.
• Adjusted net profit margin fell 0.7 percentage points to 17.9%, reflecting the faster-growing, lower-margin retail mix and continued investment in talent and organizational capabilities.
• Hotel RevPAR was 100.45% of the year-ago level. Atour opened 128 hotels in the quarter and maintained its full-year target of about 480 openings, alongside a target of about 80 closures.
• Retail revenue grew 51% to CNY 1.4 billion, and management raised its 2026 retail revenue growth outlook to 50%–55%, from 40% previously.
• The company reported CNY 2.7 billion in cash and cash equivalents and CNY 2.5 billion in net cash. It said dividends and share repurchases have delivered more than $260 million in shareholder returns so far this year, with a long-term target of about 100% of prior-year net income.

Atour Lifestyle Price Performance

Shares of ATAT stock traded up $1.07 on Wednesday, hitting $37.12. 626,836 shares of the company’s stock were exchanged, compared to its average volume of 1,048,818. Atour Lifestyle has a 12 month low of $30.07 and a 12 month high of $43.17. The stock has a market cap of $5.10 billion, a P/E ratio of 18.28, a price-to-earnings-growth ratio of 1.00 and a beta of 0.66. The company has a 50 day moving average of $33.04 and a 200 day moving average of $34.98.

Key Atour Lifestyle News

These are some of the ATAT news items that stood out recently:

• Positive Sentiment: Third-quarter revenue rose 30.5% year over year to RMB 3.43 billion (about $511.5 million), exceeding the roughly $480 million analyst estimate. Atour revenue climbs 30.5%
• Positive Sentiment: The board declared a cash dividend under the company’s existing annual dividend policy, adding a shareholder-return measure. Atour announces cash dividend
• Negative Sentiment: Despite the revenue beat, adjusted earnings were $0.48 per share, below the $0.56 consensus estimate. Same-hotel revenue also declined, raising concerns about performance at existing properties amid sales growth. Shares fall as same-hotel revenue declines

Analyst Upgrades and Downgrades

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

About Atour Lifestyle

Atour Lifestyle Holdings Limited is a China-based hospitality company that operates a network of hotels under brands including Atour, Atour S and Atour Light. Its hotels emphasize comfortable accommodations, service and design inspired by local culture. The company primarily expands through hotel management and franchise arrangements, working with property owners and operators rather than relying solely on hotels it owns. Its services include hotel operations, reservations and guest experiences.