Baidu (NASDAQ:BIDU) earnings for the Chinese internet search company’s second quarter of 2020 have BIDU stock falling hard after-hours Thursday. That’s despite its adjusted earnings per share of 14.73 yuan beating out Wall Street’s estimate of 9.58 yuan. Its revenue of 26.03 billion yuan also comes in higher than analysts’ estimate of 25.7 billion yuan.
Let’s take a deeper dive into the most recent Baidu earnings report below.
- Adjusted per-share earnings are up 46% from 10.11 yuan in the same period of the year prior.
- Revenue for the quarter comes in 1% lower than the 26.33 billion yuan reported in Q2 2019.
- Operating income of 3.64 billion yuan is a 1,464% increase year-over-year from 233 million yuan.
- The Baidu earnings report also has net income coming in at 3.58 billion yuan.
- That’s a 48% improvement over the company’s net income of 2.41 billion yuan reported during the same time last year.
Robin Li, co-founder and CEO of Baidu, said this about the company’s earnings.
“With COVID-19 becoming more manageable in China, Baidu’s business is steadily rebounding. We are pleased that in-app revenue grew in the second quarter, despite a challenging macro environment, further validating our strategy to make Baidu App a super app through AI-powered building blocks and marketing cloud platform.”
Baidu provides guidance for its third quarter of 2020 in the current earnings report. The company expects revenue for the period to range from 26.3 billion yuan to 28.7 billion yuan. That has the midpoint of 27.5 billion yuan below Wall Street’s revenue estimate of 27.57 billion yuan.
BIDU stock was down 5.2% after markets closed on Thursday and was down 1.2% when normal trading ended.
As of this writing, William White did not hold a position in any of the aforementioned securities.