Baidu (Nasdaq: BIDU) reported earnings on July 23. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Baidu met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share increased significantly.

Gross margins dropped, operating margins dropped, net margins grew.

Revenue details
Baidu reported revenue of $858.8 million. The 15 analysts polled by S&P Capital IQ predicted revenue of $856.3 million on the same basis. GAAP reported sales were 63% higher than the prior-year quarter's $528.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.24. The 14 earnings estimates compiled by S&P Capital IQ forecast $1.11 per share. GAAP EPS of $1.24 for Q2 were 72% higher than the prior-year quarter's $0.72 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 72.4%, 870 basis points worse than the prior-year quarter. Operating margin was 51.6%, 280 basis points worse than the prior-year quarter. Net margin was 50.8%, 300 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $998.3 million. On the bottom line, the average EPS estimate is $1.28.

Next year's average estimate for revenue is $3.54 billion. The average EPS estimate is $4.54.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 4,408 members rating the stock outperform, and 629 members rating it underperform. Among 1,091 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 956 give Baidu a green thumbs-up, and 135 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Baidu is buy, with an average price target of $179.62.

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