Shares of Baidu (Nasdaq: BIDU) are lower on the session Monday
heading into the Chinese Internet search giant's second-quarter
2012 earnings report, expected out after the market closes Monday.
Baidu's management will hold an earnings conference call at 8:00 PM
on July 23, 2012 U.S. Eastern Time (8:00 AM on July 24, 2012
Beijing/Hong Kong Time). U.S. residents can dial-in at
1-718-354-1231 with passcode 98897814.
Analysts currently see Baidu profit growing a staggering 56 percent
to $1.12 per share, from 72 cents reported in the same period last
year. Revenue should grow well over 60 percent to $850.8 million.
consensus calls for EPS of $1.11 on revs of $812.8 million.
Shares of Baidu fell 21 percent in the quarter, to $114.98 at the
end of June. The stock is down an additional 6.6 percent since
then, but is down just 1.3 percent since the start of 2012.
Many expect Baidu to potentially miss the mark. Profit growth is
expected to slow below 70 percent for the first time in at least
nine quarters, according to
-compiled data. In addition, the broader Chinese economy is seeing
its own slowdown which is hitting companies. Net income for
state-owned companies fell 12 percent in the first-half of 2012 as
slowed to a new three-year low
in the second quarter.
Acting fast, the People's Bank of China cut key lending rates twice
within about a one month time frame, each time by 25 basis points.
was the first time China trimmed lending rates since 2008, while
the latest one
only bolstered the urgency.
data shows 27 analysts with a Buy rating on Baidu, four at Neutral,
and zero with a Sell rating.
The consensus price target is $179, ranging from $118.50 up to
$205. Over the last year, Baidu shares have traded within a range
of $99.71 to $165.96.
- Deutsche Bank sees Buy-rated Baidu producing
- Deutsche Bank sees EPS of RMB 7.18 (about $1.124) and revs of
RMB 5.427 billion ($849.8 million). Heading into results,
Deutsche Bank is positive following Baidu management clearing up
its outlook expectations, saying second-quarter 2011 revenue
growth was "outsized" due to increased digital ad sales on
strength in the group buying and e-Commerce segments.
Deutsche also cites data from Analysys saying China's Internet
search market size grew 62 percent from the same period last
year. Baidu currently boasts 75.5 percent market share.
Baidu also recently launched its second smartphone based on its
mobile operating system, Yi, in addition to the release of its
own Android-based cloud ROM, which supports the Samsung Nexus
Stay tuned to StreetInsider.com's
section to see our analysis of the highly-anticipated quarterly
results within seconds of their release. You can also check out
Baidu's past performance at Streetinsider's
Baidu's Income Statement