Baidu Comes Up Short on Revenues and Guidance — China Web Maturing?

Baidu Inc. (NASDAQ: BIDU) reported its earnings on Monday evening. The leader in Chinese Internet search's third-quarter earnings came in with a 49% revenue gain to RMB6.251 billion (about $994.6 million), and operating profit in the third quarter rose by about 48% to RMB3.297 billion (about $524.6 million). Net income attributable to Baidu rose almost 60% to RMB3.008 billion, or about $478.6 million. That translated to earnings per ADS of $1.37 (EPS).

Thomson Reuters was calling for the equivalent of $1.28 EPS and $1.00 billion in sales for the third quarter.

While Baidu said that it is seeing good progress on mobile monetization, this progress is from a rather low base, and the CEO said that mobile monetization will involve an inevitable transition period.

Competition is now gaining from Qihoo 360 Technology Co. Ltd. (NYSE: QIHU). Baidu put its fourth-quarter sales growth at an implied rate of 37.6% to 41.8%, or to $979.3 million to $1.01 billion. Unfortunately, Thomson Reuters has estimates of $1.03 billion. Baidu is still expected to grow as it has that massive market share and the ever-growing Chinese Internet population.

Baidu's close on Friday was at $113.84 and its 52-week range is $99.71 to $154.15. What is so hard to comprehend for many investors is that Baidu is still worth close to $40 billion, even after falling by about one-quarter from its peak.

JON C. OGG


Filed under: 24/7 Wall St. Wire, ADR, China, Earnings, Internet, Technology, Technology Companies Tagged: BIDU, featured, QIHU
Read Full Story

Markets

DJIA 21,409.55 14.79 0.07%
NASDAQ 6,247.15 -18.10 -0.29%
S&P 500 2,439.07 0.77 0.03%
NIKKEI 225 20,219.02 65.67 0.33%
HANG SENG 25,894.55 22.66 0.09%
DAX 12,770.83 37.42 0.29%
USD (per EUR) 1.12 0.00 0.06%
USD (per CHF) 0.97 0.00 -0.03%
JPY (per USD) 111.88 0.03 0.02%
GBP (per USD) 1.27 0.00 0.02%

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.