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Autohome (ATHM) Q3 Earnings Beat, Stock Down on Revenue Miss
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Shares of Autohome Inc. (ATHM - Free Report) are down 10.8% since the company reported mixed third-quarter 2020 results on Nov 30. The company reported third-quarter non-GAAP earnings of $1.11 per share, which beat the Zacks Consensus Estimate by 2.8%.
However, revenues of $341 million lagged the Zacks Consensus Estimate of $342 million. Nevertheless, on a year-over-year basis, the top line improved 12.2% (as reported in dollar terms), driven by growth witnessed in Online marketplace and other revenues.
Notably, on a year-to-date basis, Autohome stock has returned 18% compared with industry’s rally of 33.1%.
Top-Line Details
Media services revenues (40% of total revenues) were $136.6 million, up 12% year over year (as reported).
Leads generation services revenues (36.3% of total revenues) of $123.8 million improved 8.1% year over year, owing to increase in average revenue per paying dealer.
Meanwhile, Autohome’s Online marketplace and other revenues (23.7% of total revenues) of $80.7 million witnessed year-over-year growth of 31.4%. The upside was driven by data products with traction across OEMs and dealers. Data products business recorded year-over-year growth of nearly 51% in the quarter. The company’s latest Smart Store 2.0 data product has reached dealer base of 2,700.
Autohome’s daily average users were 39 million, and improved from June figures, showing strength in demand.
The road trip business continues to witness robust growth. The gross merchandise volume (GMV) for the first nine months of 2020 more than doubled compared with full-year 2019 GMV. In the third quarter, revenues from used car business unit raked in double-digit growth on a year-over-year basis.
Revenues from new initiatives grew 31% on a year-over-year basis and contributed 24% to the total revenues.
Margin Details
Management noted that gross margin was "stable" at 89% in the third quarter.
Meanwhile, total operating expenses of $216.2 million, climbed 8.3% year over year.
The company reported operating profit of $109.6 million up 22.3% year over year. Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $144 million compared with $119 million reported in the prior-year quarter.
As of Sep 30, 2020, Autohome’s cash and cash equivalents (and short-term investments) totaled $1.98 billion compared with $1.84 billion as of Jun 30, 2020. In the third quarter, net cash provided by operating activities amounted to $74.2 million compared with $65.9 million reported in the second quarter.
Q4 Guidance
Autohome’s revenues are anticipated to be $364.5-$365.9 million. The company reported revenues of $334.6 million in fourth-quarter 2019.
Robust adoption of online marketing services on the heels of shift to online channels, triggered by coronavirus crisis, is likely to cushion the top-line growth.
Solid uptick in new data products, including data analysis and marketing services, aimed at enabling automakers and dealers boost efficiency and facilitate transactions is also expected to drive the top line.
Zacks Rank & Stocks to Consider
Autohome currently carries a Zacks Rank #3 (Hold).
Long-term earnings growth rate for Cirrus Logic, Qorvo and Avnet is pegged at 7.1%, 15.8% and 19%, respectively.
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Autohome (ATHM) Q3 Earnings Beat, Stock Down on Revenue Miss
Shares of Autohome Inc. (ATHM - Free Report) are down 10.8% since the company reported mixed third-quarter 2020 results on Nov 30. The company reported third-quarter non-GAAP earnings of $1.11 per share, which beat the Zacks Consensus Estimate by 2.8%.
However, revenues of $341 million lagged the Zacks Consensus Estimate of $342 million. Nevertheless, on a year-over-year basis, the top line improved 12.2% (as reported in dollar terms), driven by growth witnessed in Online marketplace and other revenues.
Notably, on a year-to-date basis, Autohome stock has returned 18% compared with industry’s rally of 33.1%.
Top-Line Details
Media services revenues (40% of total revenues) were $136.6 million, up 12% year over year (as reported).
Leads generation services revenues (36.3% of total revenues) of $123.8 million improved 8.1% year over year, owing to increase in average revenue per paying dealer.
Meanwhile, Autohome’s Online marketplace and other revenues (23.7% of total revenues) of $80.7 million witnessed year-over-year growth of 31.4%. The upside was driven by data products with traction across OEMs and dealers. Data products business recorded year-over-year growth of nearly 51% in the quarter. The company’s latest Smart Store 2.0 data product has reached dealer base of 2,700.
Autohome’s daily average users were 39 million, and improved from June figures, showing strength in demand.
The road trip business continues to witness robust growth. The gross merchandise volume (GMV) for the first nine months of 2020 more than doubled compared with full-year 2019 GMV. In the third quarter, revenues from used car business unit raked in double-digit growth on a year-over-year basis.
Revenues from new initiatives grew 31% on a year-over-year basis and contributed 24% to the total revenues.
Margin Details
Management noted that gross margin was "stable" at 89% in the third quarter.
Meanwhile, total operating expenses of $216.2 million, climbed 8.3% year over year.
The company reported operating profit of $109.6 million up 22.3% year over year. Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $144 million compared with $119 million reported in the prior-year quarter.
Autohome Inc. Price, Consensus and EPS Surprise
Autohome Inc. price-consensus-eps-surprise-chart | Autohome Inc. Quote
Balance Sheet
As of Sep 30, 2020, Autohome’s cash and cash equivalents (and short-term investments) totaled $1.98 billion compared with $1.84 billion as of Jun 30, 2020. In the third quarter, net cash provided by operating activities amounted to $74.2 million compared with $65.9 million reported in the second quarter.
Q4 Guidance
Autohome’s revenues are anticipated to be $364.5-$365.9 million. The company reported revenues of $334.6 million in fourth-quarter 2019.
Robust adoption of online marketing services on the heels of shift to online channels, triggered by coronavirus crisis, is likely to cushion the top-line growth.
Solid uptick in new data products, including data analysis and marketing services, aimed at enabling automakers and dealers boost efficiency and facilitate transactions is also expected to drive the top line.
Zacks Rank & Stocks to Consider
Autohome currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Cirrus Logic (CRUS - Free Report) , Qorvo (QRVO - Free Report) , and Avnet (AVT - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Cirrus Logic, Qorvo and Avnet is pegged at 7.1%, 15.8% and 19%, respectively.
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Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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