The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Baidu met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.
Gross margins shrank, operating margins shrank, net margins grew.
Baidu tallied revenue of $1.00 billion. The 19 analysts polled by S&P Capital IQ predicted a top line of $1.00 billion on the same basis. GAAP reported sales were 52% higher than the prior-year quarter's $654.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.38. The 16 earnings estimates compiled by S&P Capital IQ anticipated $1.28 per share. GAAP EPS of $1.37 for Q3 were 63% higher than the prior-year quarter's $0.84 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 72.9%, 790 basis points worse than the prior-year quarter. Operating margin was 52.7%, 60 basis points worse than the prior-year quarter. Net margin was 48.1%, 300 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.04 billion. On the bottom line, the average EPS estimate is $1.29.
Next year's average estimate for revenue is $3.56 billion. The average EPS estimate is $4.70.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 4,486 members out of 5,110 rating the stock outperform, and 624 members rating it underperform. Among 1,146 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,018 give Baidu a green thumbs-up, and 128 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Baidu is outperform, with an average price target of $163.94.
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