Baidu (BIDU) Stock Gains on Earnings & Revenue Beats

Baidu Inc. (BIDU - Free Report) just released its latest quarterly financial results, posting non-GAAP earnings of $2.60 per share and revenues of $3.33 billion.

Currently, BIDU is a Zacks Rank #3 (Hold), but that could change based on today’s results. Shares of the company have lost about 1.5% over the past month but the stock added 3.2% during regular trading hours today.

The stock is currently up 5.6% to $252.00 per share in after-hours trading shortly after its earnings report was released.

Baidu:

Beat earnings estimates. The company posted adjusted earnings of $2.60 per share, crushing the Zacks Consensus Estimate of $1.73. Investors should note that this consensus projection has trended upward over the duration of the quarter.

Beat revenue estimates. The company saw revenue figures of $3.33 billion, topping our consensus estimate of $3.26 billion. Total revenue increased 31% year over year.

Mobile revenue represented 78% of total net revenue, compared to 70% in the year-ago period. Total revenues of Baidu Core were $2.57 billion, increasing 26% year over year. Content costs were $669 million, representing a 59% increase. The year-over-year increase was mainly due to iQIYI's higher content costs.

“Through innovation, search plus feed is powering strong monetization, DuerOS is showing accelerated momentum with hardware partners and Apollo has a great potential to become a world-class technology platform,” said CEO Robin Li.

For the second quarter of 2018, Baidu expects revenues to be between $3.97 billion and $4.17 billion, representing a 26% to 33% increase year over year. Our latest consensus estimate was calling for revenue of $3.91 billion.

Here’s a graph that looks at Baidu’s recent earnings performance:

Baidu, Inc. Price, Consensus and EPS Surprise

Baidu, Inc. Price, Consensus and EPS Surprise | Baidu, Inc. Quote

Baidu, Inc. is a Chinese-language Internet search provider and is based in Beijing, the People's Republic of China. The company offers a Chinese language search platform and conducts its operations principally through Baidu Online Network Technology Co., Ltd., a network of third-party Web sites and software applications.