Baidu posts better than expected Q1 report

By: Miguel A. Rodriguez

09:45, 14 September 2020

One of the biggest network companies in the world gained more than expected.

Yesterday, the Chinese search giant Baidu posted a financial report that exceeded analyst expectations and made predictions about the 2nd trimester.

Analysts were expecting revenue of $21.93 billion and an EPS of $4. Baidu wiped off the consensus and posted a revenue of $22.55 billion, and an EPS of $8.84. Although the results were good, they are still 7% lower than the same period last year.  

In March, the number of users increased by 28% to 222 million daily active users. For the American depositary receipt, it had an adjusted EPS of $1.25, and $3.18 billion in revenue. 

The pandemic made the Baidu’s usage remain satisfactory, with its app DAU “reaching 222 million, up 28% year-over-year, in-app search queries up 45%, and feed time spent up 51%," Robin Li, CEO, stated.

For the current quarter, Baidu envisions a $3.5 billion up to $3.9 billion in revenue, and a 4% yearly increase. Wall Street expects $3.6 billion in revenue.

In after-hours trading, the stock price gained 8% to $116.75. Overall, the stock fell by 10% from the start of 2020.

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Sources: thestreet.com, cnbc.com, marketwatch.com


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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.