Baidu Earnings: Solid Growth

Baidu, Inc. (NASDAQ:BIDU) delivered a profit and beat Wall Street’s expectations, yet shares are down 0.23%.

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Baidu, Inc. Earnings Cheat Sheet

Results: Net income of $448.7 million ($1.31 per diluted share) in the quarter.

Revenue: $1.02 billion

Actual vs. Wall St. Expectations: Baidu, Inc. reported adjusted net income of $1.31 per share. By that measure, the company beat the mean analyst estimate of $1.29.

Quoting Management: “Baidu once again posted solid growth in 2012 amidst challenging macro conditions,” said Robin Li, chairman and chief executive officer of Baidu. “Similar to the early days of the Internet, this is a time of boundless innovation, creativity and opportunity in our industry. We are at the heart of the Internet in China and we’re excited to embrace and lead the next stage of mobile- and cloud-centric Internet growth…

Mr. Li continued, “We made encouraging progress in 2012, integrating Baidu’s superior search and search-related products and functions, like maps and image recognition, into our offering. In 2013 we will continue to enhance functionality, introduce new products, and step up efforts to push our products to users.”

Jennifer Li, Baidu’s chief financial officer, commented, “Revenue growth and profitability maintained a healthy trajectory in 2012 as we continued to invest aggressively in developing a comprehensive ecosystem. In December, we completed the iQiyi deal and consolidated its financials in our fourth quarter results. In 2013, we’ll be both stepping up our investments and increasing sales and marketing efforts to ensure Baidu captures the huge opportunities ahead.”

Key Stats:

Revenue increased 2.26% from $994.56 million in the previous quarter. Net income decreased 6.24% from $478.56 million 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 $1.18 to a profit $1.16. For the current year, the average estimate has moved up from a profit of $4.74 to a profit of $4.77 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)