Autohome Q2 Revenue Exceeds Guidance; Stock Drops Nevertheless
Autohome Inc. (NYSE: ATHM) saw its shares drop nearly 2 percent intraday Wednesday, despite posting growth in revenue and income in the second quarter.
The Beijing-based online car dealer reported revenue of $336.3 million, up 24 percent year-over-year, for the three months through June, exceeding its own guidance. Its net income jumped 16 percent to $116.8 million.
Autohome said it saw improvement across its businesses during the second quarter.
"We strove to expand content offerings while continuing to improve the user experience through a major upgrade of the Autohome App," Min Lu, the chief executive officer of Autohome, said in an official statement.
The company said the total number of average daily active users who visited mobile websites, apps and mini-apps of Autohome hit 37.8 million, soaring 48 percent year-over-year. Operating expenses climbed 35 percent to $194.5 million due to the increased offline operations to support automakers and dealers.
Lu called the quarter "solid," despite witnessing a decline in new car sales.
China's car sales plummeted more than 12 percent in the first half year, according to a July report by China Association of Automobile Manufacturers.
Autohome's chief financial officer, Jun Zou, said, "In response to the prolonged sales decline in the auto sector, we proactively stepped up our efforts in supporting original equipment manufacturer and dealers through initiatives such as the ‘818 Global Super Auto Show'."
Looking ahead, the company said it expects a year-over-year increase in revenue of 14 to 16 percent in the third quarter to between $314.6 million and $319 million.
The stock in Autohome were trading at $78.80 per American depositary share, down 2 percent, on Wednesday afternoon.