Earnings Research - Baidu

LONDON, November 17, 2014 /PRNewswire/ --

Investor-Edge.com has issued free earnings research on Baidu Inc. (NASDAQ: BIDU). On October 29, 2014, the company reported its financial results for Q3 FY14 (period ended September 30, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Baidu Inc. For Q3 FY14, Baidu Inc.'s total revenue surged 52.0% from Q3 FY13, and the net income attributable to Baidu shareholders increased 27.2% Y-o-Y. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

Baidu Inc.'s total revenues during the Q3 FY14 increased to RMB13.520 billion ($2.203 billion) from RMB 8.892 billion in Q3 FY13. The company's reported revenue fell short of Bloomberg analysts' forecasts of RMB13.579 billion. The company's online marketing revenues during Q3 FY14 surged 51.8% to RMB13.427 billion ($2.188 billion) from RMB8.848 billion in Q3 FY13. Baidu had about 516,000 active online marketing customers in Q3 FY14, representing an increase of 11.2% from Q3 FY13. Further, Baidu's revenue per online marketing customer for the reported quarter increased 35.6% Y-o-Y to RMB25,900 ($4,220). The free research on BIDU can be downloaded as in PDF format at:

www.Investor-Edge.com/BIDUFreeReport

The company's operating profit during Q3 FY14 grew 17.4% Y-o-Y to RMB3.920 billion ($638.6 million) from RMB3.338 billion in Q3 FY13. Baidu's total operating costs and expenses in Q3 FY14 increased to RMB9.600 billion from RMB5.554 billion in Q3 FY13. Net income attributable to Baidu broadened to RMB3.876 billion ($631.5 million), from RMB3.048 billion in Q3 FY14. Diluted earnings attributable to Baidu per ADS (American Depositary Shares) stood at RMB11.00 ($1.79). Analysts from Bloomberg had expected the company to report net income of RMB3.457 billion, or RMB9.83 per diluted share in Q3 FY14. Excluding share-based compensation expenses (non-GAAP), diluted earnings attributable to Baidu per ADS for the reported quarter stood at RMB11.67, or $1.90 per share.

As of September 30, 2014, the company had cash, cash equivalents and short-term investments of RMB51.348 billion ($8.366 billion). Baidu's net operating cash inflow for the reported quarter was RMB4.855 billion ($791.0 million). Further, the company's capital expenditures for Q3 FY14 stood at RMB1.380 billion ($224.8 million). Sign up and read the free analyst's notes on BIDU at:

www.Investor-Edge.com/BIDU-17112014

Robin Li, Chairman and CEO of Baidu, stated that the company had another very strong quarter as it continued to leverage its tremendous assets, especially in mobile. During Q3 FY14, mobile traffic surpassed PC traffic and mobile revenue contributed 36% of the company's total revenue, he informed. Mr. Li further said that the company is particularly pleased with the progress made in connecting people with services through innovative O2O initiatives like Baidu Connect - a better way for businesses to connect with their targeted consumers on mobile devices. Mr. Li also stated that the O2O market opportunity is enormous, and Baidu's leading positions in mobile search and maps, as well as its extensive sales force, position the company optimally to capture that opportunity.

Jennifer Li, Baidu's CFO, mentioned that in Q3 FY14 the company's investments in mobile continued to pay off as mobile proved once again to be a strong driver of topline growth. She added that to fulfill the company's vision of connecting people with services and to realize the vast opportunities that mobile brings, Baidu will continue to invest aggressively but judiciously. Visit Investor-Edge and access the latest research on BIDU at:

www.Investor-Edge.com/BIDUEarningsCoverage

For Q4 FY14, Baidu expects to generate total revenues in an amount ranging from RMB13.850 billion ($2.256 billion) to RMB14.250 billion ($2.322 billion), representing a Y-o-Y of increase of 45.4% to 49.6%.

Stock Performance  

On the day following the earnings release, October 30, 2014, Baidu's stock surged 5.55% to end the session at $237.01. Although the stock has moved both ways since then, the gains have outweighed the losses so far. On the last close, Friday, November 14, 2014, the stock finished at $249.70, up 2.30%, after vacillating between $244.54 and $251.22. A total of 3.64 million shares were traded, which was above its three months average volume of 3.48 million shares. The stock has witnessed a gain of 21.37% over the last one month and 14.10% over the previous three months. Further, the company's shares have surged 40.38% since from the beginning of this year. Shares in Baidu closed above their 50-day and 200-day moving averages of $222.93 and $189.42, respectively. Furthermore, the stock traded at a PE ratio of 42.27 and has a Relative Strength Index (RSI) of 65.67.

Sneak Peek to Corporate Insider Trading 

In the last one month Baidu Inc. has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on BIDU is available at:

www.Investor-Edge.com/BIDUInsiderTrading

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