Yahoo Finance Atour Lifestyle Holdings Limited Beat Revenue Forecasts By 6.3%: Here's What Analysts Are Forecasting Next
Atour Lifestyle Holdings Limited (NASDAQ:ATAT) just released its latest yearly results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 6.3% to hit CN¥4.7b. Statutory earnings per share (EPS) came in at CN¥5.34, some 3.3% above whatthe analysts had expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Atour Lifestyle Holdings
Taking into account the latest results, the consensus forecast from Atour Lifestyle Holdings' nine analysts is for revenues of CN¥5.73b in 2024. This reflects a huge 23% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 49% to CN¥7.96. Before this earnings report, the analysts had been forecasting revenues of CN¥5.40b and earnings per share (EPS) of CN¥7.97 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the small lift in revenue estimates.
Even though revenue forecasts increased, there was no change to the consensus price target of US$29.69, suggesting the analysts are focused on earnings as the driver of value creation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Atour Lifestyle Holdings, with the most bullish analyst valuing it at US$37.96 and the most bearish at US$23.90 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Atour Lifestyle Holdings' revenue growth is expected to slow, with the forecast 23% annualised growth rate until the end of 2024 being well below the historical 31% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.7% annually. So it's pretty clear that, while Atour Lifestyle Holdings' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Atour Lifestyle Holdings analysts - going out to 2026, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Atour Lifestyle Holdings you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
