Volatile stock to watch: Autohome Inc (NYSE: ATHM)

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Autohome Inc (NYSE: ATHM) stock lost over 2.3% in the pre-market session of June 2nd, 2020 (as of 4:11 pm GMT-4 ; Source: Google finance) due to average first quarter of FY 20. The company has reported the net income of 587.2 million yuan ($82.9 million) compared to CNY646.3 million, in the comparable quarter last year. At the end of March, 2020, the Company had cash and cash equivalents and short-term investments of RMB13.30 billion ($1,878.4 million). In the first quarter, total new passenger vehicle sales declined by 45% year-over-year due to the COVID-19 outbreak and subsequent extension of the Chinese New Year holiday. Media services revenues had fallen to RMB566.3 million ($80.0 million), compared to RMB643.2 million in the corresponding period of 2019due to the decrease of average revenue per automaker advertiser amid the challenging macroeconomic environment in China related to the COVID-19 pandemic.  Leads generation services revenues had fallen to RMB670.5 million ($94.7 million), compared to RMB 734.1 million in the corresponding period of 2019 mainly due to the decline in the number of paying dealers under the difficult operating conditions related to the COVID-19 pandemic.

ATHM in the first quarter of FY 20 has reported the adjusted earnings per share of CNY5.40, while reported the adjusted revenue of CNY1.55 billion in the first quarter of FY 20. The revenue from new initiatives rose by 32% year-over-year and contributed to 20% of total revenues compared to a revenue contribution of 15% for the same period last year on the back of robust revenues from data products, which increased by over 80% year-over-year. The company has delivered an operating profit of RMB586 million for the first quarter of 2020 compared to RMB657 million in the corresponding period of last year.

Online marketplace and others revenues rose by 32.1% to RMB309.9 million ($43.8 million) from RMB234.6 million in the corresponding period of 2019. The increase was on the back of the increased contribution from data products. Data Products in the online marketplace and other business formed the revenue growth of more than 80% year-over-year in the first quarter of 2020.

For the second quarter of 2020, the company expects to generate net revenues in the range of RMB2.220 billion to RMB2.320 billion.

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