If you thought that Google's
Baidu
Don't be surprised. China's leading search engine routinely lands ahead of the pros.
EPS estimate |
EPS actual |
|
---|---|---|
Q3 2010 |
$0.41 |
$0.45 |
Q2 2010 |
$0.31 |
$0.35 |
Q1 2010 |
$0.15 |
$0.20 |
Q4 2009 |
$0.17 |
$0.18 |
Source: Yahoo! Finance.
There are now 272,000 advertisers on Baidu's growing Rolodex, 26% ahead of where its sponsor count was a year ago. See how revenue is growing substantially faster than the number of advertisers? The average marketer is spending a lot more to smoke out leads through Baidu.
The move validates Baidu's engine, but advertising growth in general is booming in China -- if you know where to look.
Baidu is the first of China's new wave of marketing outlets that will be reporting quarterly results in the coming weeks. Don't hold out hope for similar speedsters.
AirMedia
-
VisionChina
(Nasdaq: VISN) , with its network of multimedia monitors on bus, train, and subway systems, is believed to be heading toward a 27% top-line spurt. However, like AirMedia, it's also projected to post a small quarterly deficit. - New-media darling SINA
(Nasdaq: SINA) is only expected to grow its top line by 7%. -
Focus Media
(Nasdaq: FMCN) , a leader in billboards, elevator posters, and video monitors in high-traffic areas, is actually pegged to post a 14% decline in revenue.
Yes, shares of Baidu are expensive, but there's nothing even in China like it.
Things may be getting even better, too. Baidu's guidance for the current quarter calls for an 88% to 94% surge in revenue. Yes, even after the third quarter's meaty 76% push, there's room for accelerating growth.
Baidu isn't cheap, but it probably never will be, given its healthy growth trajectory.
Do you think Baidu is a good buy at this point? Share your thoughts in the comment box below.