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Atour Lifestyle to Post Q1 Earnings: What's in Store for the Stock?

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Atour Lifestyle Holdings Limited (ATAT - Free Report) is scheduled to report first-quarter 2025 results on May 22.

ATAT’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 5.2%. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)

Trend in Estimate Revision of ATAT

The Zacks Consensus Estimate for first-quarter earnings per share is pegged at 32 cents, indicating an improvement of 23.1% from 26 cents reported in the year-ago quarter.

For revenues, the consensus mark is pegged at nearly $259.1 million, suggesting growth of 27.4% from the prior-year quarter’s figure.

Let's look at how things have shaped up in the quarter.

Factors Likely to Shape Atour Lifestyle’s Quarterly Results

Atour Lifestyle’s first-quarter performance is likely to have benefited from robust hotel network expansion, continued brand momentum and the growing strength of its retail business. High franchisee engagement, strategic rollout of Atour 4.0 and Atour Light 3.0 hotels, and increasing penetration in higher-tier and second-tier cities are likely to have supported the company’s performance in the to-be-reported quarter.

ATAT’s performance is expected to have gained from disciplined hotel development, strong occupancy trends and effective revenue management strategies. The company’s growing base of operational hotels and stable business travel recovery likely supported overall room night demand in the first quarter.

Momentum in the company’s retail business, led by the Atour PLANET brand, is expected to have contributed to ATAT’s top line in the first quarter. Sleep-focused products such as memory foam pillows and thermo-regulating comforters likely drove strong performance across e-commerce platforms. Management expects retail revenues to grow by at least 35% year over year in 2025, reinforcing the segment’s role as a high-margin growth engine and a strategic complement to the core hospitality business.

However, volatility in RevPAR performance owing to seasonal factors and adverse weather conditions is likely to have negatively impacted the company’s performance in the first quarter. Atour Lifestyle anticipates a year-over-year decline in RevPAR in the mid- to high-single-digit range. Macroeconomic headwinds such as inflation and increased marketing expenditures tied to brand building may have weighed on margins in the first quarter.

What Our Model Says About ATAT Stock

Our proven model does not conclusively predict an earnings beat for Atour Lifestyle 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. However, this is not the case here.

ATAT’s Earnings ESP: Atour Lifestyle has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

ATAT’s Zacks Rank: Atour Lifestyle carries a Zacks Rank #3 at present.

Stocks With the Favorable Combination

Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.

PENN Entertainment, Inc. (PENN - Free Report) has an Earnings ESP of +2.54% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

PENN Entertainment is expected to register a 50% gain in earnings for the to-be-reported quarter. PENN Entertainment’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 13.5%.

Boyd Gaming Corporation (BYD - Free Report) currently has an Earnings ESP of +1.43% and a Zacks Rank of 3.

In the to-be-reported quarter, Boyd Gaming’s earnings are expected to increase 2.5% year over year. Boyd Gaming’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise being 8%.

Adtalem Global Education Inc. (ATGE - Free Report) currently has an Earnings ESP of +1.33% and a Zacks Rank of 3.

In the to-be-reported quarter, Adtalem’s earnings are expected to increase 9.5% year over year. Adtalem’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, with an average surprise being 18.4%.

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