Atour Lifestyle (NASDAQ:ATAT) Issues Quarterly Earnings Results

Key Points

• Atour reported quarterly EPS of $0.48, missing the $0.56 consensus estimate, while revenue of $511.48 million topped expectations of $480.12 million.
• Third-quarter revenue rose 30.5% year over year to CNY 3.4 billion, but adjusted net profit margin declined 0.7 percentage points to 17.9%, partly due to a growing lower-margin retail mix and investments.
• Retail revenue climbed 51%, and management raised its 2026 retail growth outlook to 50%–55%; it also maintained its target of about 480 hotel openings for the year.

Atour Lifestyle (NASDAQ:ATAT - Get Free Report) released its quarterly earnings data 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. Atour Lifestyle had a net margin of 16.75% and a return on equity of 55.00%. The company had revenue of $511.48 million for the quarter, compared to the consensus estimate of $480.12 million.

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 Trading Up 2.6%

Shares of ATAT traded up $0.94 during trading hours on Wednesday, reaching $36.99. 596,872 shares of the company traded hands, compared to its average volume of 1,048,703. The stock's fifty day moving average price is $33.04 and its 200 day moving average price is $34.98. The firm has a market cap of $5.09 billion, a price-to-earnings ratio of 18.22, a PEG ratio of 1.00 and a beta of 0.66. Atour Lifestyle has a 12-month low of $30.07 and a 12-month high of $43.17.

Key Stories Impacting Atour Lifestyle

These are some of the ATAT stories 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: Atour’s FY 2026 revenue outlook of $1.9 billion is below analysts’ roughly $2.0 billion expectation, suggesting a softer near-term growth outlook than investors had anticipated.

Wall Street Analyst Weigh In

ATAT has been the subject of several research analyst reports. HSBC began coverage on Atour Lifestyle in a report on Wednesday, October 7th. They set a "buy" rating and a $39.70 price target for the company. Zacks Research downgraded Atour Lifestyle from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, July 14th. Wall Street Zen raised shares of Atour Lifestyle from a "hold" rating to a "buy" rating in a report on Sunday, September 13th. Finally, Weiss Ratings upgraded Atour Lifestyle from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, October 8th. Eight investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $46.62.

Atour Lifestyle Company Profile

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.

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