Autohome (ATHM) Authorized a $400M Buyback as Revenue Fell 32%. Can Repurchases Outrun Business Erosion?
Autohome (ATHM) reported a 32% revenue decline in Q2, with lead-generation and marketplace revenues falling 23.5% and 52.1% respectively. Operating profit dropped 56.2% to RMB130M. Despite this, the company authorized a $400M share buyback program, following a completed $200M repurchase. Shares closed 1.6% lower at $22.12 on August 20. The company's cash reserves exceed its market value, but earnings are declining faster than share count reduction.



