The 10-second takeaway
For the quarter ended June 30 (Q2), Baidu beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share contracted slightly.
Margins contracted across the board.
Baidu tallied revenue of $1.23 billion. The 16 analysts polled by S&P Capital IQ hoped for a top line of $1.20 billion on the same basis. GAAP reported sales were 43% higher than the prior-year quarter's $858.4 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 $1.22. The 11 earnings estimates compiled by S&P Capital IQ forecast $1.21 per share. GAAP EPS of $1.22 for Q2 were 1.6% lower than the prior-year quarter's $1.24 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 65.1%, much worse than the prior-year quarter. Operating margin was 38.4%, much worse than the prior-year quarter. Net margin was 35.0%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.35 billion. On the bottom line, the average EPS estimate is $1.35.
Next year's average estimate for revenue is $4.86 billion. The average EPS estimate is $4.96.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 4,765 members out of 5,368 rating the stock outperform, and 603 members rating it underperform. Among 1,131 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,032 give Baidu a green thumbs-up, and 99 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Baidu is hold, with an average price target of $106.19.
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