AutoHome's Revenue Exceeds Expectation, Yet Stock Drops
Autohome stock closed at $87.12 per share on Wednesday, down $8.60.
Shares of Autohome Inc. (NYSE: ATHM), one of the biggest auto sales portals in China, dropped nearly 9 percent in afternoon trading Wednesday after it announced earnings for the second quarter.
The Beijing-based internet company said its revenue was $282.4 million for the second quarter, exceeding the high end of the company's original guidance of $272 million. Net Income attributable to Autohome increased nearly 32 percent to $104.5 million, compared with $78.1 million a year ago.
"Our core media and leads generation businesses remain strong across all key metrics, including user numbers, brand recognition, user engagement, and automaker/dealer partnership," said Min Lu, the chairman and chief executive officer of Autohome. "In addition, our new businesses of auto financing and data products continued to demonstrate significant growth momentum in the first half of 2018."
For the third quarter this year, the company expects to generate revenue in the range of $279.6 million to $282.6 million, representing a 31 to 32 percent year-over-year increase.
The stock of Autohome closed at $87.12 per American depositary share on Wednesday, down $8.60.
Autohome provides a comprehensive user-generated automobile library, which contains extensive automobile listing information. The platform covers the entire car purchase and ownership cycle. In addition, the company offers sales leads, data analysis, and marketing services to assist automakers and dealers with improving their efficiency and facilitating transactions.