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

Baidu, Inc. (NASDAQ:BIDU) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 13.39%.

Baidu, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 1.61% to $1.22 in the quarter versus EPS of $1.24 in the year-earlier quarter.

Revenue: Rose 43.47% to $1.23 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Baidu, Inc. reported adjusted EPS income of $1.22 per share. By that measure, the company beat the mean analyst estimate of $1.21. It beat the average revenue estimate of $1.2 billion.

Quoting Management: “We made solid progress in the second quarter, adding a record 58,000 online active customers,” said Robin Li, chairman and chief executive officer of Baidu. “The adoption of our mobile platform gained momentum and mobile monetization improved. Mobile revenues for the first time accounted for over 10% of our total revenues this quarter.”

Key Stats (on next page)…

Revenue increased 28.28% from $960.4 million in the previous quarter. EPS increased 28.42% from $0.95 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 $1.50 to a profit $1.36. For the current year, the average estimate has moved down from a profit of $5.40 to a profit of $4.97 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] wallstcheatsheet.com)

More Articles About:   , , , , , ,  

More from The Cheat Sheet