China's Autohome Q3 revenue falls 26% on lower ad and dealer spending
Overview
China online auto platform's Q3 revenue fell 26% yr/yr on lower ad and dealer spending
Adjusted net income for Q3 dropped 38% yr/yr
Company declared US$1.58 per ADS cash dividend and repurchased ~US$155.4 mln in ADSs
Outlook
Autohome declares cash dividend of US$1.58 per ADS, to be paid in March 2027
Company says it will continue to invest in strategic priorities and maintain a streamlined cost structure
Result Drivers
ADVERTISING SPEND - Co said media services revenue declined due to reduced advertising spending from automakers amid lower vehicle sales
DEALER SPENDING - Leads generation services revenue fell as dealers cut spending and the number of paying dealers decreased, citing lower auto sales
VEHICLE SALES BUSINESS - Online marketplace and other revenues dropped due to lower revenue from the company's vehicle sales business
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | RMB 1.32 bln | ||
Q3 Adjusted Net Income | RMB 252.70 mln | ||
Q3 Net Income | RMB 195 mln | ||
Q3 Operating Expenses | RMB 861.20 mln | ||
Q3 Operating Profit | RMB 95.70 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy."
Wall Street's median 12-month price target for Autohome Inc is HK$39.50, about 1.5% above its November 4 closing price of HK$38.92
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 16 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)