Autohome Inc. (NYSE:ATHM) Just Released Its Annual Earnings: Here's What Analysts Think

Investors in Autohome Inc. (NYSE:ATHM) had a good week, as its shares rose 2.2% to close at US$25.38 following the release of its annual results. Results were roughly in line with estimates, with revenues of CN¥7.2b and statutory earnings per share of CN¥15.11. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Autohome

After the latest results, the 14 analysts covering Autohome are now predicting revenues of CN¥7.50b in 2024. If met, this would reflect an okay 4.4% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be CN¥14.98, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of CN¥7.42b and earnings per share (EPS) of CN¥14.83 in 2024. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$33.64. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Autohome analyst has a price target of US$47.00 per share, while the most pessimistic values it at US$26.30. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing stands out from these estimates, which is that Autohome is forecast to grow faster in the future than it has in the past, with revenues expected to display 4.4% annualised growth until the end of 2024. If achieved, this would be a much better result than the 3.5% annual decline 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 9.8% annually for the foreseeable future. So although Autohome's revenue growth is expected to improve, it 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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. At Simply Wall St, we have a full range of analyst estimates 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.