Baidu.com, Inc. Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of 66 cents per share, a rise of 88.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 62 cents. Between one and three months ago, the average estimate moved up, and has risen from 65 cents during the last month. For the year, analysts are projecting profit of $2.68 per share, a rise of 75.2% from last year.
Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 3 cents, reporting net income of 47 cents per share against a mean estimate of profit of 44 cents per share.
Wall St. Revenue Expectations: On average, analysts predict $502.1 million in revenue this quarter, a rise of 77.9% from the year ago quarter. Analysts are forecasting total revenue of $2.01 billion for the year, a rise of 67.5% from last year’s revenue of $1.2 billion.
Analyst Ratings: Analysts are bullish on this stock with 14 analysts rating it as a buy, one rating it as a sell and four rating it as a hold.
The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of more than threefold, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose more than sixfold from the year earlier quarter.
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose more than twofold while it rose 753.8% in the fourth quarter of the last fiscal year and more than twofold in the third quarter of the last fiscal year.
The company upped its gross margin by 5.5 percentage points in the in the first quarter. Revenue rose 96.3% while cost of sales rose 63.7% to $102.3 million from a year earlier.
Competitors to Watch: Google Inc. (NASDAQ:GOOG), Sohu.com Inc. (NASDAQ:SOHU), SINA Corporation (NASDAQ:SINA), Yahoo! Inc. (NASDAQ:YHOO), NetEase.com, Inc. (NASDAQ:NTES), InfoSpace, Inc. (NASDAQ:INSP), Microsoft Corporation (NASDAQ:MSFT), Youku.com Inc (NYSE:YOKU), and AOL, Inc. (NYSE:AOL).
Stock Price Performance: During June 20, 2011 to July 19, 2011, the stock price had risen $34.28 (29%) from $118.28 to $152.56. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 5, 2011 when shares rose for seven-straight days, rising 13.4% (+$17.19) over that span. It saw one of its worst periods between May 9, 2011 and May 16, 2011 when shares fell for six-straight days, falling 10.4% (-$14.85) over that span. Shares are up $56.03 (+58%) year to date.
(Source: Xignite Financials)
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