Chinese Hospitality Company Atour Lifestyle's Q3 Revenue Nearly Doubles; Occupancy Rate Recovers
Portfolio Pulse from Shivani Kumaresan
Atour Lifestyle Holdings Ltd (NASDAQ:ATAT) reported a 93.1% year-on-year increase in Q3 FY23 sales, reaching RMB1.294 billion ($177 million). The company's hotel operations expanded with 1,112 hotels and 128,681 rooms, an increase of over 25% Y/Y. The average daily room rate and occupancy rate both surpassed 2019 levels. Operating income rose by 130% Y/Y to RMB 341.3 million ($46.8 million), and operating cash flow was RMB 543.1 million ($74.4 million). The company's cash reserves stood at RMB2.2 billion ($301 million), and EPS was RMB0.63 ($0.09). Despite the positive financial results, ATAT shares dropped by 4.84% to $18.66.
November 16, 2023 | 3:49 pm
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NEGATIVE IMPACT
Atour Lifestyle Holdings Ltd reported strong Q3 FY23 results with nearly doubled revenue and significant growth in operating income. However, the stock price fell by 4.84% despite the positive earnings report.
The negative price action following the earnings report suggests that the market had higher expectations for Atour Lifestyle's financial performance or that there are other concerns weighing on the stock price. The short-term impact is likely negative due to the immediate drop in share price post-earnings, despite the company's strong growth indicators.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100