The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Baidu beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased significantly.
Margins contracted across the board.
Baidu booked revenue of $1.02 billion. The 16 analysts polled by S&P Capital IQ foresaw revenue of $997.8 million on the same basis. GAAP reported sales were 43% higher than the prior-year quarter's $709.7 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 $1.28. The 14 earnings estimates compiled by S&P Capital IQ averaged $1.29 per share. GAAP EPS of $1.28 for Q4 were 38% higher than the prior-year quarter's $0.93 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 75.5%, 410 basis points worse than the prior-year quarter. Operating margin was 45.0%, 630 basis points worse than the prior-year quarter. Net margin was 44.1%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $953.6 million. On the bottom line, the average EPS estimate is $1.04.
Next year's average estimate for revenue is $4.83 billion. The average EPS estimate is $5.41.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 4,608 members out of 5,217 rating the stock outperform, and 609 members rating it underperform. Among 1,138 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,015 give Baidu a green thumbs-up, and 123 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 $142.02.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Baidu. The Motley Fool owns shares of Baidu. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.