Earnings Miss: Atour Lifestyle Holdings Limited Missed EPS By 66% And Analysts Are Revising Their Forecasts

The quarterly results for Atour Lifestyle Holdings Limited (NASDAQ:ATAT) were released last week, making it a good time to revisit its performance. Revenue of CN¥2.6b surpassed estimates by 6.9%, although statutory earnings per share missed badly, coming in 66% below expectations at CN¥1.13 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Atour Lifestyle Holdings after the latest results.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Following the latest results, Atour Lifestyle Holdings' 19 analysts are now forecasting revenues of CN¥12.0b in 2026. This would be a sizeable 32% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 40% to CN¥14.94. Before this earnings report, the analysts had been forecasting revenues of CN¥11.8b and earnings per share (EPS) of CN¥14.88 in 2026. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small increase to to revenue forecasts.

Check out our latest analysis for Atour Lifestyle Holdings

It may not be a surprise to see thatthe analysts have reconfirmed their price target of US$46.63, implying that the uplift in revenue is not expected to greatly contribute to Atour Lifestyle Holdings's valuation in the near term. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Atour Lifestyle Holdings, with the most bullish analyst valuing it at US$57.98 and the most bearish at US$33.97 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Atour Lifestyle Holdings' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 25% growth on an annualised basis. This is compared to a historical growth rate of 39% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 10% per year. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Atour Lifestyle Holdings analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Atour Lifestyle Holdings' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.