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Baidu, Inc. (NASDAQ:BIDU) reported net income above Wall Street’s expectations for the second quarter. Baidu.com is a Chinese language Internet search provider.
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Baidu, Inc. Earnings Cheat Sheet
Results: Net income for Baidu, Inc. rose to $436 million ($1.24 per share) vs. $252.6 million (72 cents per share) in the same quarter a year earlier. This marks a rise of 59.8% from the year-earlier quarter.
Revenue: Rose 62.6% to $858.8 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Baidu, Inc. reported adjusted net income of $1.26 per share. By that measure, the company beat the mean estimate of $1.12 per share. Analysts were expecting revenue of $850.8 million.
Quoting Management: “We are pleased to announce strong results for the second quarter despite macro headwinds and challenging comparisons with the same period last year,” said Robin Li, chairman and chief executive officer of Baidu. “Our efforts to expand our customer base continue to make solid progress.” Mr. Li continued, “In the coming quarters, we will maintain momentum by rolling out optimized sales processes and more advanced tools to help current and potential customers increase returns on their online marketing spend. We will also continue to actively explore the vast opportunities in China’s fast-emerging mobile Internet and cloud sectors.”
The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by one cent in the first quarter, by 4 cents in the fourth quarter of the last fiscal year, and by one cent in the third quarter of the last fiscal year.
Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from $1.32 a share to $1.31 over the last ninety days. For the fiscal year, the average estimate has moved down from $4.63 a share to $4.58 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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