Baidu Releases Better-Than-Expected Earnings

China’s largest internet search provider Baidu Inc (BIDU) reported its earnings for the year’s third-quarter that ended on Sept. 30 on Wednesday.

What Happened

The company published a revenue of $3.9 billion in the quarter, with $1.76 non-GAAP earnings per share (EPS). 

This is a slight increase from its quarter two revenues, where it grossed $3.85 billion with a non-GAAP EPS of $1.47.

Baidu’s revenue for this quarter exceeded Wall Street estimates, especially when it came to earnings per share. According to CNBC, analysts from Refinitive had expected Baidu to report $3.9 billion in revenue with an EPS of $1.12.

Baidu’s year-on-year performance fell only $18 short compared to last year's numbers. In the third quarter of 2018, the Chinese tech giant earned $4.11 billion, a 25% year-on-year growth from the $3.53 billion in 2017.

The company’s operating income too fell short by 47% compared to the similar quarter in 2018.

Baidu said that its income from sources other than online marketing increased by 34% year-on-year driven mainly by the increased popularity of its video platform iQiyi. The online advertising revenue fell 14% year-on-year, neutralizing the iQiyi profit.

Price Action

Baidu closed at $107.37 per share, on Wednesday, but rose up to $112, 4.32%, in the after-trade market, after the company announced the earnings.