Atour Lifestyle (NASDAQ:ATAT) Announces Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• Atour Lifestyle reported earnings of $0.42 per share, exceeding analysts' expectations of $0.41 by $0.01.
• The company has a return on equity of 43.91% and a net margin of 16.39%, indicating solid profitability.
• Atour Lifestyle's Board of Directors has authorized a share buyback plan, which is typically a sign that the company views its stock as undervalued.

Atour Lifestyle (NASDAQ:ATAT - Get Free Report) posted its quarterly earnings results on Tuesday. The company reported $0.42 EPS for the quarter, beating the consensus estimate of $0.41 by $0.01, Zacks reports. Atour Lifestyle had a net margin of 16.52% and a return on equity of 45.66%. The company had revenue of $344.49 million for the quarter, compared to analyst estimates of $326.00 million. Atour Lifestyle updated its FY 2025 guidance to EPS.

Atour Lifestyle Trading Down 0.2%

Atour Lifestyle stock traded down $0.08 during trading on Friday, hitting $38.92. The company had a trading volume of 2,174,161 shares, compared to its average volume of 1,305,539. Atour Lifestyle has a 1-year low of $17.40 and a 1-year high of $39.84. The company's 50 day simple moving average is $34.89 and its 200-day simple moving average is $30.86. The stock has a market cap of $5.38 billion, a price-to-earnings ratio of 28.20, a price-to-earnings-growth ratio of 1.31 and a beta of 0.82.

Atour Lifestyle announced that its board has authorized a stock buyback plan on Thursday, May 22nd that authorizes the company to repurchase $0.00 in shares. This repurchase authorization authorizes the company to buy shares of its stock through open market purchases. Stock repurchase plans are often a sign that the company's board believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on ATAT. Wall Street Zen downgraded shares of Atour Lifestyle from a "buy" rating to a "hold" rating in a research report on Saturday, July 12th. Citigroup reaffirmed a "buy" rating and issued a $38.00 price target (up from $36.50) on shares of Atour Lifestyle in a research note on Friday, May 23rd. Four research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the stock has an average rating of "Buy" and an average target price of $36.63.

Hedge Funds Weigh In On Atour Lifestyle

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ATAT. Qube Research & Technologies Ltd boosted its position in Atour Lifestyle by 172.5% in the 2nd quarter. Qube Research & Technologies Ltd now owns 975,098 shares of the company's stock valued at $31,700,000 after buying an additional 617,292 shares during the period. Canada Pension Plan Investment Board lifted its position in shares of Atour Lifestyle by 44.8% during the 2nd quarter. Canada Pension Plan Investment Board now owns 613,054 shares of the company's stock worth $19,930,000 after purchasing an additional 189,800 shares during the last quarter. First Trust Advisors LP purchased a new stake in shares of Atour Lifestyle during the 2nd quarter worth $1,586,000. Jump Financial LLC lifted its position in shares of Atour Lifestyle by 38.0% during the 2nd quarter. Jump Financial LLC now owns 62,192 shares of the company's stock worth $2,022,000 after purchasing an additional 17,124 shares during the last quarter. Finally, BI Asset Management Fondsmaeglerselskab A S lifted its position in shares of Atour Lifestyle by 35.2% during the 2nd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 58,120 shares of the company's stock worth $1,889,000 after purchasing an additional 15,127 shares during the last quarter. Hedge funds and other institutional investors own 17.79% of the company's stock.

Atour Lifestyle Company Profile

Atour Lifestyle Holdings Limited, through its subsidiaries, develops lifestyle brands around hotel offerings in the People's Republic of China. The company provides hotel management services, including day-to-day management services of the hotels for the franchisees; and sells hotel supplies and other products.