Baidu Inc. (NASDAQ: BIDU) reported its earnings on Monday night. The leader of Chinese Internet search is showing that competition is now gaining from Qihoo 360 Technology Co. Ltd. (NYSE: QIHU), and it telegraphed its own long-term outlook for mobile as well. Shares are down, but holding up better than we might have guessed considering the guidance.
Baidu’s third-quarter results 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). Its net income in the third quarter attributable to Baidu rose almost 60% to RMB3.008 billion, or about $478.6 million. That translated to earnings of $1.37 per share on a comparable ADS basis. Thomson Reuters was calling for the equivalent of $1.28 per share and $1.00 billion in sales for the third quarter.
The progress in mobile search and monetization is one that Baidu said was making good progress, but that progress is from a rather low base. Baidu also telegraphed that mobile monetization will involve an inevitable transition period. Guidance was just unimpressive for this company.
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. Thomson Reuters had estimates of $1.03 billion. Investors expect that Baidu can still keep its growth up due to a massive market share and with such a large Chinese Internet population.
Baidu’s shares are indicated down more than 4% at $108.47 so far in early indications on Wednesday, after closing at $113.84 on Friday. Its 52-week range is $99.71 to $154.15. The company has a market cap of close to $40 billion even after it has lost about one-quarter of its value from the peak.
JON C. OGG
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.