Baidu Fourth Quarter Earnings Sneak Peek

Baidu (NASDAQ:BIDU) will unveil its latest earnings tomorrow, Monday, February 4, 2013. Baidu.com is a Chinese language Internet search provider.

Baidu Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.28 per share, a rise of 37.6% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate moved up. It has dropped from $1.29 during the last month. For the year, analysts are projecting net income of $4.77 per share, a rise of 57.9% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 10 cents, coming in at profit of $1.37 a share versus the estimate of net income of $1.27 a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the third quarter, profit rose 62.4% to $478.6 million ($1.37 a share) from $294.7 million (84 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 52.1% to $994.6 million from $653.9 million.

Here’s how Baidu traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

bidu

Wall St. Revenue Expectations: Analysts predict a rise of 42.1% in revenue from the year-earlier quarter to $1 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.12 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 4.69 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 75.1% to $1.19 billion while assets rose 16.3% to $3.72 billion.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 82% in the first quarter and 62.5% in the second quarter before climbing again in the third quarter.

Stock Price Performance: From December 28, 2012 to January 29, 2013, the stock price rose $10.45 (10.6%), from $99 to $109.45. The stock price saw one of its best stretches over the last year between December 5, 2012 and December 12, 2012, when shares rose for six straight days, increasing 9% (+$7.97) over that span. It saw one of its worst periods between May 2, 2012 and May 14, 2012 when shares fell for nine straight days, dropping 9.1% (-$12.27) over that span.

Analyst Ratings: With 11 analysts rating the stock a buy, none rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)