How did ATAT's Q4 earnings surprise investors?

Atour Lifestyle Holdings Limited (ATAT) delivered Q4 earnings that notably exceeded investor expectations, as evidenced by the following key points:

1. **Earnings Per Share (EPS) Surprise**: The reported EPS was 33 cents, surpassing the Zacks Consensus Estimate of 30 cents by 10%. This indicates a strong performance relative to forecasts.
2. **Revenue Surprise**: ATAT achieved net revenues of $286 million, marking a significant 34.9% year-over-year growth. This growth was notably above the consensus mark of $272 million, reflecting a 4.9% surprise.
3. **Segmental Performance**: Within ATAT's diversified model, the Manachised Hotels segment saw a 30% year-over-year revenue increase, reaching $152 million. In contrast, the Leased Hotels segment experienced a 15.9% decline, with revenues dropping to $22 million due to strategic adjustments. However, the Retail segment demonstrated robust growth, with revenues soaring by 85.6% to $105 million, driven by brand recognition and product diversification.
4. **Operational Highlights**: The company's network expansion and supply chain growth significantly contributed to the revenue surge. The number of hotels in the Manachised segment expanded to 1,593, up from 1,178. Despite increasing operating costs and expenses, ATAT leveraged its growing top line and operational efficiencies to maintain profitability.

Overall, ATAT's Q4 performance was marked by robust revenue growth, segmental strength, and a notable EPS surprise, which likely contributed to investor enthusiasm and confidence in the company's future prospects.