Baidu Releases Better-Than-Expected Earnings

China’s largest internet search provider Baidu Inc (NASDAQ: BIDU) reported its earnings for the third quarter that ended on Sept. 30.

Benzinga · 11/07/2019 11:43

China’s largest internet search provider Baidu Inc (NASDAQ: BIDUreported its earnings for the third quarter that ended on Sept. 30.

What Happened

The company posted revenue of $3.9 billion in the quarter, with $1.76 non-GAAP earnings per share. This is a slight increase from its quarter two revenues, where it grossed $3.85 billion with a non-GAAP EPS of $1.47.

Baidu’s revenue for this quarter exceeded Wall Street estimates, especially when it came to earnings per share. According to CNBC, analysts from Refinitive had expected Baidu to report $3.9 billion in revenue with an EPS of $1.12.

In the third quarter of 2018, the Chinese tech giant earned $4.11 billion, a 25% year-on-year growth from the $3.53 billion in 2017.

The company’s operating income too fell short by 47% compared to the similar quarter in 2018.

Baidu said its income from sources other than online marketing increased by 34% year-on-year driven mainly by the increased popularity of its video platform iQiyi. The online advertising revenue fell 14% year-on-year, neutralizing the iQiyi profit.

Price Action

Baidu closed at $107.37 per share on Wednesday, but rose 4.32% in the after-hours trading.