Stock Analysis

Autohome Inc. Just Recorded A 10% EPS Beat: Here's What Analysts Are Forecasting Next

NYSE:ATHM
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Autohome Inc. (NYSE:ATHM) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues were CN¥1.8b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of CN¥3.45 were also better than expected, beating analyst predictions by 10%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Autohome

earnings-and-revenue-growth
NYSE:ATHM Earnings and Revenue Growth November 9th 2024

Taking into account the latest results, Autohome's 15 analysts currently expect revenues in 2025 to be CN¥7.18b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be CN¥14.31, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of CN¥7.23b and earnings per share (EPS) of CN¥14.34 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of US$30.14, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Autohome analyst has a price target of US$34.00 per share, while the most pessimistic values it at US$24.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Autohome shareholders.

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. It's also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2025. Historically, Autohome's top line has shrunk approximately 4.7% annually over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 11% annually. So it's pretty clear that, although revenues are improving, Autohome is still expected to grow slower than the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Autohome's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$30.14, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Autohome going out to 2026, and you can see them free on our platform here.

Even so, be aware that Autohome is showing 1 warning sign in our investment analysis , you should know about...

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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.