Earnings Review and Free Research Report: Autohome’s Net Revenue Jumped 13.3%; Net Income Soared 49.7%

Research Desk Line-up: Match Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 31, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Autohome Inc. (NYSE: ATHM), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=ATHM, following the Company’s disclosure of its second quarter fiscal 2017 financial results on August 09, 2017. The leading internet car-buying website in China outperformed top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Internet Information Providers industry. Pro-TD has currently selected Match Group, Inc. (NASDAQ: MTCH) for due-diligence and potential coverage as the Company posted on August 01, 2017, its financial results for Q2 2017 on its website. Register for a free membership today, and be among the early birds that get access to our report on Match when we publish it.

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Earnings Reviewed

Autohome’s net revenues increased 13.3% to RMB1.56 billion ($230.4 million) compared to net revenues of RMB1.38 billion in Q2 2016. The increase was mainly due to a 36.5% increase in revenues from media and leads generation services. The Company’s revenue numbers surpassed analysts’ expectations of $209.49 million.

During Q2 2017, Autohome’s cost of revenues decreased 38.0% to RMB287.4 million ($42.4 million) from RMB463.8 million in Q2 2016, primarily due to a decrease in cost of goods sold related to direct vehicle sales. Excluding the cost of goods sold, the Company’s cost of revenues would have increased 37.4% to RMB231.6 million ($34.2 million) from RMB168.6 million in Q2 2016, primarily due to an increase in value-added tax and surcharges which were in-line with the increase in revenues from media and leads generation services.

For Q2 2017, Autohome’s operating expenses rose 35.3% to RMB707.3 million ($104.3 million) from RMB522.9 million in Q2 2016. This increase was mainly due to increases in sales and marketing expenses and product development expenses as the Company continues to reinvest in future growth opportunities.

Autohome’s sales and marketing expenses increased 34.6% to RMB412.3 million ($60.8 million) from RMB306.4 million in Q2 2016. This increase was primarily due to increased offline execution and promotional expenses. The Company’s sales and marketing expenses for the reported quarter included share-based compensation expenses of RMB13.7 million ($2.0 million) compared to RMB10.2 million in the corresponding period of 2016.

For Q2 2017, Autohome’s product development expenses increased 54.7% to RMB215.4 million ($31.8 million) from RMB139.2 million in Q2 2016. This increase was primarily attributable to an increase in salaries and benefits associated with growth in product development headcount, which is in-line with the Company’s strategy of strengthening its technology and big data analysis capabilities.

Autohome’s operating profit surged 44.8% to RMB567.2 million ($83.7 million) in Q2 2017, compared to RMB391.8 million in Q2 2016.

During Q2 2017, net income attributable to Autohome soared 49.7% to RMB517.7 million ($76.4 million) from RMB345.8 million in Q2 2016. The Company’s basic and diluted earnings per share (EPS) and per ADS were RMB4.46 ($0.66) and RMB4.40 ($0.65) respectively, compared to basic and diluted EPS of RMB3.04 and RMB2.99, respectively, in the corresponding period of 2016.

Adjusted net income attributable to Autohome, defined as net income attributable to the Company, excluding share-based compensation expenses and amortization expenses of intangible assets related to acquisitions, increased 42.8% to RMB565.2 million ($83.4 million) from RMB395.7 million in Q2 2016. Autohome’s non-GAAP diluted EPS were RMB4.80 ($0.71) compared to non-GAAP diluted EPS of RMB3.42 in the prior year’s corresponding quarter. The Company’s earnings exceeded Wall Street’s expectations of $0.51 per share.

Segment Results

During Q2 2017, Autohome’s Media services revenues increased 34.1% to RMB799.4 million ($117.9 million) from RMB596.2 million in Q2 2016, driven by an increase in average revenue per automaker advertiser as automakers continue to allocate a greater portion of their advertising budgets to the Company’s online advertising and marketing channels.

For Q2 2017, Autohome’s leads generation services revenues surged 39.5% to RMB659.7 million ($97.3 million) from RMB472.7 million in Q2 2016, attributable to a 23.8% jump in average revenue per paying dealer.

Autohome’s online marketplace revenues totaled RMB102.8 million ($15.2 million) compared to RMB309.4 million in Q2 2016. In the reported quarter, the Company sold 647 vehicles and generated RMB57.1 million ($8.4 million) in direct vehicle sales revenues. This was in-line with the Company’s strategy to de-emphasize direct vehicle sales and focus on facilitating transactions.

Balance Sheet and Cash Flow

As of June 30, 2017, Autohome had cash and cash equivalents and short-term investments of RMB6.29 billion ($927.4 million). Net cash provided by the Company’s operating activities was RMB107.2 million ($15.8 million) in Q2 2017. The Company had 4,025 employees as of June 30, 2017.

Business Outlook

Autohome is forecasting to generate net revenues in the range of RMB1.48 billion ($218.3 million) to RMB1.52 billion ($224.2 million) in Q3 2017; representing a 0.3% to 3.1% year-over-year increase.

Stock Performance

At the closing bell, on Wednesday, August 30, 2017, Autohome’s stock rose slightly by 0.56%, ending the trading session at $64.41. A total volume of 954.55 thousand shares have exchanged hands. The Company’s stock price skyrocketed 48.07% in the last three months, 92.90% in the past six months, and 157.64% in the previous twelve months. Moreover, the stock soared 154.79% since the start of the year. The stock is trading at a PE ratio of 32.38 and currently, has a market cap of $7.63 billion.

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