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AutoHome Reports Mixed Q2 Results
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AutoHome Reports Mixed Q2 Results

AutoHome (ATHM), which engages in the development, operation, and maintenance of mobile applications and automobile websites, has delivered mixed results for the second quarter ended June 30, 2021. While the company was able to beat the Street’s earnings estimates, it missed revenue expectations during the quarter.

Adjusted earnings per ADS came in at RMB6.26 ($0.97), above the Street’s estimates of RMB5.96 ($0.92). The company had reported earnings per ADS of RMB7.36 ($1.14) in the same quarter last year. (See AutoHome stock charts on TipRanks).

AutoHome reported Q2 revenues of RMB1.94 billion ($300.2 million), down 16.2% year-over-year. Also, it missed the Street’s expectations of RMB2.01 billion ($310 million). The downside was primarily due to a 35.6% fall in revenues from media services, along with an 11.5% decline in leads generation services revenues.

As of June 30, 2021, AutoHome held cash and cash equivalents and short-term investments of RMB18.43 billion ($2.85 billion). Also, net cash provided by operating activities in the second quarter stood at RMB580.8 million ($90 million).

The Chairman of the Board of Directors and CEO of Autohome, Quan Long, said, “Looking ahead, with our strong balance sheet and profitable position and backed by our cooperation with Ping An, we believe we are well positioned to capture new opportunities in strategic growth areas, as we seek to propel long-term sustainable growth.”

On August 11, J.P. Morgan analyst Alex Yao maintained a Hold rating on the stock and lowered the price target to $47 from $90. The new price target implies 12.2% upside potential from current levels.

Based on 1 Buy, 4 Holds and 2 Sells, the stock has a Hold consensus rating. The average AutoHome price target of $65.67 implies 56.8% upside potential from current levels.

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on AutoHome with 7.1% of investors on TipRanks increasing their exposure to ATHM stock over the past seven days.

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