ATRenew (NYSE:RERE) Announces Earnings Results

ATRenew (NYSE:RERE) released its earnings results on Tuesday. The company reported $0.08 earnings per share for the quarter, topping analysts’ consensus estimates of $0.07 by $0.01, Zacks reports. The business had revenue of $893.46 million for the quarter, compared to analyst estimates of $856.02 million. ATRenew had a net margin of 1.90% and a return on equity of 11.60%.

Here are the key takeaways from ATRenew’s conference call:

• Q1 revenue and profit beat expectations, with total revenue up 32.4% year over year to RMB 6.16 billion and Non-GAAP operating income up 70.2% to over RMB 190 million, both reaching record levels.
• The company’s 1P-centric strategy continued to gain traction, with 1P2C retail accounting for 45.1% of product revenue, up from 33.0% a year ago, helping improve 1P gross margin to 15.9%.
• Compliant refurbishment and direct-to-consumer sales grew rapidly, with refurbished product revenue up 76.1% and March monthly sales of compliant refurbished products surpassing RMB 200 million for the first time.
• The 3P marketplace and multi-category recycling businesses also expanded strongly, including multi-category recycling GMV up 81.5% and PJT Marketplace registered merchants rising to nearly 2 million.
• Management reiterated 2026 growth and margin improvement expectations and guided Q2 revenue to RMB 6.24 billion-RMB 6.34 billion, up 25%-27% year over year, while also extending its share repurchase program.

ATRenew Stock Performance

Shares of NYSE RERE traded down $0.18 during midday trading on Thursday, reaching $5.01. 226,295 shares of the stock were exchanged, compared to its average volume of 1,180,433. The stock has a market capitalization of $1.10 billion, a P/E ratio of 20.14 and a beta of 0.25. The company has a 50 day simple moving average of $4.83 and a 200 day simple moving average of $5.11. ATRenew has a twelve month low of $2.41 and a twelve month high of $6.47.

ATRenew Announces Dividend

The company also recently declared a dividend, which was paid on Friday, April 24th. Stockholders of record on Monday, April 6th were issued a dividend of $0.10 per share. The ex-dividend date was Monday, April 6th. ATRenew’s dividend payout ratio (DPR) is currently 40.00%.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the company. Weiss Ratings downgraded ATRenew from a “hold (c+)” rating to a “hold (c)” rating in a research report on Friday, May 1st. Wall Street Zen upgraded ATRenew from a “buy” rating to a “strong-buy” rating in a report on Sunday, March 22nd. One investment analyst has rated the stock with a Hold rating, According to data from MarketBeat.com, the stock has a consensus rating of “Hold”.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Squarepoint Ops LLC grew its holdings in shares of ATRenew by 29.4% during the 4th quarter. Squarepoint Ops LLC now owns 38,701 shares of the company’s stock worth $205,000 after purchasing an additional 8,785 shares during the period. Van ECK Associates Corp raised its holdings in ATRenew by 10.3% in the 4th quarter. Van ECK Associates Corp now owns 19,794 shares of the company’s stock valued at $105,000 after buying an additional 1,855 shares during the period. Prelude Capital Management LLC acquired a new position in ATRenew in the third quarter valued at about $113,000. Two Sigma Investments LP acquired a new position in ATRenew in the third quarter valued at about $201,000. Finally, Caxton Associates LLP purchased a new position in ATRenew during the first quarter worth about $114,000. 19.29% of the stock is currently owned by hedge funds and other institutional investors.

ATRenew Company Profile

ATRenew Inc, through its subsidiaries, operates pre-owned consumer electronics transactions and services platform in the People's Republic of China. It primarily sells mobile phones, laptops, tablets, drones, digital cameras; and vintage bags, watches, liquor, gold, and various household goods through its online platforms and offline stores, as well as provides services to third-party merchants to sell the products through its platforms. The company was formerly known as AiHuiShou International Co Ltd.