Atour Lifestyle Holdings Limited ATAT is scheduled to report fourth-quarter 2024 results on March 25. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 2.6%. In each of the trailing four quarters, the company’s earnings surpassed the consensus estimate by 5.4%.

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The Zacks Consensus Estimate is pegged at 30 cents per share, indicating growth of 42.9% year over year. The consensus mark for revenues is pegged at $267.2 million, indicating a 26% increase from a year ago.

Factors to Note Ahead of ATAT’s Q4 Results

Atour Lifestyle’s fourth-quarter performance is expected to have been driven by strong domestic travel demand, growth in its membership base, strategic expansion and brand enhancements. With leisure tourism on the rise, the company has effectively capitalized on shifting consumer preferences by strengthening its presence in the upper midscale hotel market and refining offerings to align with evolving trends. These efforts are likely to have positively impacted occupancy rates, revenue per available room and overall business growth.

A major growth driver for Atour Lifestyle has been its aggressive hotel expansion strategy, with a record number of new openings this year. The addition of Atour Light properties has further broadened its reach, appealing to a wider demographic, particularly younger and female travelers.

Additionally, strong franchisee confidence and a robust development pipeline continue to reinforce Atour Lifestyle’s revenue streams. The company’s ability to scale efficiently while maintaining high brand standards is expected to have enhanced operational efficiencies and support long-term growth.

What Our Model Says About ATAT

Our proven model does not conclusively predict an earnings beat for Atour Lifestyle this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.

ATAT’s Earnings ESP: ATAT has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

ATAT’s Zacks Rank: ATAT carries a Zacks Rank #2 at present.

Stocks With the Favorable Combination

Here are three companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:

Chewy CHWY has an Earnings ESP of +15.66% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

CHWY’s top line is anticipated to advance year over year when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.19 billion, which suggests a 13.1% rise from the figure reported in the year-ago quarter. 

The company is expected to register an increase in the bottom line. The consensus estimate for Chewy’s fourth-quarter earnings is pegged at 21 cents per share, up 16.7% from the year-ago quarter. CHWY delivered a trailing four-quarter negative earnings surprise of 30.9%, on average.

MGM Resorts International MGM currently has an Earnings ESP of +5.16% and a Zacks Rank of 3. 

MGM's earnings for the to-be-reported quarter are expected to decline 29.7% year over year. The company reported an earnings beat in the trailing three quarters and missed once, the average surprise being 21.8%.

Hilton Worldwide Holdings Inc. HLT has an Earnings ESP of +1.52% and a Zacks Rank of 3 at present.

HLT reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 5.1%. The company’s earnings for the to-be-reported quarter are expected to grow 5.9% year over year.

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MGM Resorts International (MGM) : Free Stock Analysis Report

Hilton Worldwide Holdings Inc. (HLT) : Free Stock Analysis Report

Chewy (CHWY) : Free Stock Analysis Report

Atour Lifestyle Holdings Limited Sponsored ADR (ATAT) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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