Baidu (Nasdaq: BIDU) reported earnings on Feb. 4. Here are the numbers you need to know.
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.
Revenue details
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 details
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.
Margin details
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.
Looking ahead
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.
Investor sentiment
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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