Atour Lifestyle Q4 Earnings & Revenues Top, Adjusted EBITDA Up Y/Y

Atour Lifestyle Holdings Limited ATAT reported robust fourth-quarter 2024 results, with earnings and net revenues beating the Zacks Consensus Estimate and increasing on a year-over-year basis.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The quarter’s result was mainly backed by the ongoing hotel network expansion and the growth of the company’s supply chain business. Furthermore, the widespread recognition of its retail brands and effective product innovation and development reflecting diversified product offerings also bode well during the quarter.Although increasing operating costs and expenses are concerning, leverage from the growing top line and operational efficiencies aided the company’s bottom line.Atour Lifestyle’s Q4 in DetailThe company reported earnings per share (EPS) of 33 cents, beating the Zacks Consensus Estimate of 30 cents by 10%. In the prior-year quarter, ATAT recorded an adjusted EPS of 21 cents.Net revenues of $286 million also topped the consensus mark of $272 million by 4.9% and grew 34.9% year over year.Atour Lifestyle Holdings Limited Sponsored ADR Price, Consensus and EPS Surprise Atour Lifestyle Holdings Limited Sponsored ADR price-consensus-eps-surprise-chart | Atour Lifestyle Holdings Limited Sponsored ADR QuoteRevenues in the Manachised hotels segment increased 30% year over year to $152 million, with the total number of hotels increasing year over year to 1,593 from 1,178 as of the fourth quarter end.The Leased hotels segmental revenues declined 15.9% year over year to $22 million due to the decrease in the number of leased hotels as a result of the company’s product mix optimization. At the end of the quarter, the number of hotels in this segment tumbled to 26 from 32.Revenues from the Retail segment significantly grew year over year by 85.6% to $105 million due to increased product diversification initiatives and growing brand recognition.The Others segment’s revenues during the quarter grew 3.4% to $7 million compared with last year's quarter.Operating Highlights of ATATTotal operating costs and expenses totaled $233 million, up year over year from $187 million. Hotel operating costs increased 5.8% year over year to $109 million, mainly due to the increase in variable costs, such as supply-chain costs, associated with the company’s ongoing hotel network expansion.The selling and marketing expenses rose significantly 69% year over year to $49 million because of enhanced investments in brand recognition and the development of online channels, aligned with the growth of its retail business.Adjusted EBITDA amounted to $61 million, up 76.5% year over year.Sneak Peek at Atour Lifestyle’s 2024The full-year net revenues increased 55.3% year over year to $993 million.The full-year EPS increased to $1.26 in 2024 compared with 75 cents reported in 2023ATAT’s FinancialsAs of Dec. 31, 2024, Atour Lifestyle’s cash and cash equivalents and restricted cash were $496 million compared with $400 million as of Dec. 31, 2023.At the end of the fourth quarter, the total outstanding borrowings were $8.5 million, down from $10 million at 2023-end.ATAT Unveils 2025 OutlookThe company expects net revenues to grow 25% compared with 2024.ATAT’s Zacks Rank & Other Key PicksAtour Lifestyle currently carries a Zacks Rank #2 (Buy).Here are other top-ranked stocks from the Consumer Discretionary sector.Life Time Group Holdings, Inc. LTH presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The company has a trailing four-quarter earnings surprise of 21.6%, on average. The stock has gained 44.1% year to date. The consensus estimate for Life Time Group’s 2025 sales and EPS implies growth of 12.9% and 37.9%, respectively, from the year-ago levels.Flexsteel Industries, Inc. FLXS currently sports a Zacks Rank of 1. The company has a trailing four-quarter earnings surprise of 19.8%, on average. The stock has lost 30.1% year to date.The Zacks Consensus Estimate for Flexsteel’s fiscal 2025 sales and EPS indicates an increase of 6.6% and 67.3%, respectively, from the year-ago levels.RCI Hospitality Holdings, Inc. RICK currently sports a Zacks Rank of 1. The company has a trailing four-quarter negative earnings surprise of 62.9%, on average. The stock has lost 20.2% year to date.The Zacks Consensus Estimate for RCI Hospitality’s fiscal 2025 sales and EPS indicates an increase of 2.5% and 1,278.8%, respectively, from the year-ago levels.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Flexsteel Industries, Inc. (FLXS): Free Stock Analysis Report RCI Hospitality Holdings, Inc. (RICK): Free Stock Analysis Report Life Time Group Holdings, Inc. (LTH): Free Stock Analysis Report Atour Lifestyle Holdings Limited Sponsored ADR (ATAT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks