What happened
Shares of Autohome (ATHM 0.20%) sank on Tuesday after the Chinese platform for automobile consumers reported its third-quarter results. Autohome missed analyst estimates across the board, and its guidance was below expectations. The stock was down about 12.2% at 11:45 a.m. EST.
So what
Autohome reported third-quarter revenue of $303.6 million, up 14.9% year over year but about $2.4 million below the average analyst estimate. Media services revenue was $129.3 million; leads generation services revenue was $116.0 million; and online marketplace and other revenue was $58.3 million. Non-GAAP (adjusted) earnings per share came in at $0.82, down 4.9% year over year in local currency and $0.01 below analyst expectations.
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Along with its results, Autohome announced a new annual dividend policy. Beginning in 2020, the company plans to distribute a cash dividend equal to 20% of its net income in the previous year.
Now what
While the dividend announcement was a positive for investors, Autohome's guidance was a negative. The company expects to produce fourth-quarter revenue between $315.5 million and $326.0 million, below analyst expectations of $326.8 million.
Factoring in Tuesday's rout, shares of Autohome are now essentially flat year-to-date.
