Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Baidu Announces Strong Q4 and FY 2012 Results

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

On Monday, Baidu (NASDAQ: BIDU  ) released its unaudited financial results from the fourth quarter and fiscal year ending Dec. 31, and the numbers came in strong despite a challenging macro environment in 2012. Still, Baidu's quarterly and yearly earnings per share were in line with analyst estimates, and the company saw its content and acquisition costs increase. Shares are down about 5% in after-market trading.

For Q4, year-over-year numbers were up 41.6% for total revenue, which came in at $1.017 billion. Operating profit rose 24% to $457.1 million, and net income climbed 36.1% to $448.7 million in net income. Diluted earnings per share for the quarter amounted to $1.28, while analysts estimated $1.29. Content and acquisition costs were RMB120.3 million ($19.3 million) and RMB606.8 million ($97.4 million), respectively. Compared to the corresponding period in 2011, content costs increased from 0.6% to 1.9% of total revenues. Acquisition costs increased from 7.9% to 9.6% of total revenues.

For the fiscal year, Baidu claimed $3.580 billion in revenue, a 53.8% leap over fiscal 2011. Operating profit was up 45.9% to $1.774 billion, and net income climbed 57.5% to also finish at $1.774 billion in net income. Total diluted EPS for the year were $4.79, while analysts estimates were $4.77. Content and acquisition costs were RMB215.1 million ($34.5 million) and RMB1.930 billion ($309.8 million), respectively. Compared to 2011, content costs increased from 0.5% to 1% of total revenues. Acquisition costs increased from 8% to 8.7% of total revenues.

"We made encouraging progress in 2012, integrating Baidu's superior search and search-related products and functions, like maps and image recognition, into our offering," Chairman and CEO Robin Li said. "In 2013 we will continue to enhance functionality, introduce new products, and step up efforts to push our products to users."

CFO Jennifer Li added:

Revenue growth and profitability maintained a healthy trajectory in 2012 as we continued to invest aggressively in developing a comprehensive ecosystem. In December, we completed the iQiyi deal and consolidated its financials in our fourth quarter results. In 2013, we'll be both stepping up our investments and increasing sales and marketing efforts to ensure Baidu captures the huge opportunities ahead.

Regardless of your short-term view on the Chinese economy, there may be opportunity in Baidu (a.k.a. the "Chinese Google"). Our brand-new premium report breaks down the dominant Chinese search provider's strengths and weaknesses. Just click here to access it now.

Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2235031, ~/Articles/ArticleHandler.aspx, 10/28/2016 12:44:42 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,246.55 76.87 0.42%
S&P 500 2,139.27 6.23 0.29%
NASD 5,229.08 13.10 0.25%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/28/2016 12:29 PM
BIDU $180.82 Up +5.72 +3.27%
Baidu CAPS Rating: *****