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Autohome (ATHM) to Report Q3 Earnings: What's in Store?

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Autohome Inc. (ATHM - Free Report) is scheduled to release third-quarter 2020 results on Nov 30.

The company anticipates third-quarter revenues between $317.1 million and $322.7 million.

The Zacks Consensus Estimate for revenues stands at $326.75 million, suggesting growth of 7.6% from the year-ago reported figure.

The consensus for third-quarter earnings improved 6.1% over the past seven days to $1.05 per share. The figure indicates improvement of 28.05% on a year-over-year basis.

Factors Likely to Have Influenced Q3 Results

Autohome’s third-quarter performance is anticipated to have benefited from strength in its diversified product portfolio. Robust adoption of online marketing services driven by shift to online channels, triggered by coronavirus crisis, is likely to have favored the top-line growth.

Autohome Inc. Price and EPS Surprise

Autohome Inc. Price and EPS Surprise

Autohome Inc. price-eps-surprise | Autohome Inc. Quote

Solid uptick in new data products, including data analysis and marketing services, aimed at enabling automakers and dealers boost efficiency and facilitate transactions is expected to have contributed to the third-quarter performance.

The company’s consistent initiatives to expand lead generation business might have benefited the to-be-reported quarter’s performance.

Furthermore, the traction witnessed by virtual auto shows and live stream programs is expected to have bolstered traffic. The company’s partnership synergies and shift in preference to online marketplaces may have favored the third-quarter performance.

Autohome has been banking on product innovation and introduction of data products for used vehicles in a bid to maintain competitive position.

Nevertheless, the company’s third-quarter performance is likely to have been affected by sluggishness in media services business due to coronavirus crisis induced broader macroeconomic weakness in automobile market, and weak spending on ad from small and medium sized businesses.

Also, increasing expenses to enhance effectiveness and outreach of online marketing programs amid stiff competition are likely to have limited margin expansion in the third quarter.

Moreover, decline in OEM spending on online automobile advertising on account of weakness in automobile industry remains a risk and is likely to have weighed on the third-quarter performance.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Autohome this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Autohome has an Earnings ESP of +3.81% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks that Warrant a Look

Here are some other companies, which too have the right combination of elements to post an earnings beat:

RH (RH - Free Report) has an Earnings ESP of +0.94% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Signet Jewelers Limited (SIG - Free Report) has an Earnings ESP of +13.95% and a Zacks Rank #2.

American Outdoor Brands, Inc. (AOUT - Free Report) , currently a Zacks #3 Ranked stock, has an Earnings ESP of +4.00%.

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