Baidu Earnings: Here’s Why the Stock is Falling Now

Baidu, Inc. (NASDAQ:BIDU) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 6.87%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Baidu, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 11.76% to $0.95 in the quarter versus EPS of $0.85 in the year-earlier quarter.

Revenue: Rose 41.91% to $961 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Baidu, Inc. reported adjusted EPS income of $0.95 per share. By that measure, the company missed the mean analyst estimate of $1.03. It missed the average revenue estimate of $969 million.

Quoting Management: “We saw healthy financial results in the first quarter of 2013 as we continued to invest in establishing China’s leading mobile ecosystem.” said Robin Li, chairman and chief executive officer of Baidu. “Our mobile offering is making exciting progress, with our flagship mobile search product having now surpassed 100 million daily active users, an over 25% increase from the end of the fourth quarter.”

Key Stats (on next page)…

Revenue decreased 7.91% from $1.04 billion in the previous quarter. EPS decreased 25.78% from $1.28 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.45 to a profit $1.34. For the current year, the average estimate has moved down from a profit of $5.94 to a profit of $5.41 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]