AACG Earnings Prediction
The chart below shows how AACG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AACG sees a +26.31% change in stock price 10 days leading up to the earnings, and a -1.35% change 10 days following the report. On the earnings day itself, the stock moves by +2.88%. This data can give you a slight idea of what to expect for the next quarter's release.
AACG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
67.25M
13.13%
29.93%
Gross Margin
44.60%
-9.28%
-10.13%
Operating Margin
-26.19%
97.66%
-34.69%
Net Margin
-21.79%
77.44%
-32.68%
EPS
-0.23
-91.67%
-14.81%
No Data Available
AACG Earnings Analysis
ATA Creativity Global American Depositary Shares Corporation (AACG.O) Earnings Conference Call
Positive
Q3 Revenue Increase: 1. Strong Revenue Growth: Total net revenue for Q3 2024 reached RMB67.3 million, marking a 13.1% increase from RMB59.5 million in Q3 2023.
Enrollment Surge: 2. Significant Enrollment Increase: Total student enrollment for the first nine months of 2024 increased by 20% compared to the same period in 2023, with portfolio training enrollment rising by 20.7%.
Gross Profit Increase: 3. Improved Gross Profit: Gross profit for the first nine months of 2024 was RMB77.6 million, a 24.6% increase from RMB52.3 million in the same period of 2023.
Increased Training Engagement: 4. Higher Credit Hours Delivered: Credit hours delivered for portfolio training services increased by 28.5% for the first nine months of 2024, with time-based programs up by 29%.
Full Year Revenue Guidance: 5. Positive Full Year Guidance: The company expects to achieve full year 2024 revenue guidance of RMB233 million to RMB255 million, representing a year-over-year increase of 5% to 15%.
Negative
Operational Loss Increase: Loss from operations in Q3 2024 was RMB17.6 million, compared to RMB7.9 million in Q3 2023, indicating a significant increase in operational losses.
Increased Net Loss: Net loss attributable to ACG during Q3 2024 was RMB14.7 million, up from RMB7.3 million in the prior year period, reflecting worsening financial performance.
Operating Expenses Increase: Total operating expenses in Q3 2024 rose to RMB47.7 million, a 28.4% increase from RMB37.1 million in Q3 2023, driven by higher sales and administrative costs.
Operating Expenses Increase: Total operating expenses for the nine months of 2024 reached RMB137.7 million, a 22% increase from RMB112.9 million in the same period of 2023, indicating rising operational costs.
Precarious Cash Position: As of September 30, 2024, ACG had only RMB39.4 million in cash and cash equivalents against total liabilities of RMB393.2 million, highlighting a precarious cash position.
AACG FAQs
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AACG Earning Call Sentiment
ATA Creativity Global (AACG) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
AACG.O
-2.79%Positive
The earnings call presents a mixed outlook. While ACG shows strong enrollment growth and new strategic partnerships, financials reveal increased losses and operating expenses, with a decline in gross margin. Revenue guidance is modest, and the absence of a share repurchase program may concern investors. The Q&A did not raise significant concerns. Without a market cap and considering the lack of strong positive catalysts, the stock price is likely to remain neutral, fluctuating within -2% to 2% over the next two weeks.
