What to Expect from Baidu's Earnings

Baidu BIDU is preparing to release its quarterly earnings on Thursday, 2024-11-21. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Baidu to report an earnings per share (EPS) of $2.35.

Baidu bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Overview of Past Earnings

During the last quarter, the company reported an EPS beat by $0.31, leading to a 0.1% drop in the share price on the subsequent day.

Here's a look at Baidu's past performance and the resulting price change:

Tracking Baidu's Stock Performance

Shares of Baidu were trading at $86.02 as of November 19. Over the last 52-week period, shares are down 30.29%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Opinions on Baidu

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Baidu.

With 7 analyst ratings, Baidu has a consensus rating of Buy. The average one-year price target is $115.14, indicating a potential 33.85% upside.

Peer Ratings Comparison

This comparison focuses on the analyst ratings and average 1-year price targets of Pinterest, Snap and IAC, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• For Pinterest, analysts project an Outperform trajectory, with an average 1-year price target of $40.67, indicating a potential 52.72% downside.
• For Snap, analysts project an Neutral trajectory, with an average 1-year price target of $12.83, indicating a potential 85.08% downside.
• IAC is maintaining an Buy status according to analysts, with an average 1-year price target of $80.29, indicating a potential 6.66% downside.

Summary of Peers Analysis

In the peer analysis summary, key metrics for Pinterest, Snap and IAC are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Baidu ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, Baidu is at the top.

Unveiling the Story Behind Baidu

Baidu is the largest internet search engine in China with over 50% share of the search engine market in 2024 per web analytics firm, Statcounter. The firm generated 72% of core revenue from online marketing services from its search engine in 2023. Outside its search engine, Baidu is a technology-driven company and its other major growth initiatives are artificial intelligence cloud, video streaming services, voice recognition technology, and autonomous driving.

Financial Insights: Baidu

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Challenges: Baidu's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -0.37%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Communication Services sector.

Net Margin: Baidu's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 16.17% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Baidu's ROE excels beyond industry benchmarks, reaching 2.19%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Baidu's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.32% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.33.

To track all earnings releases for Baidu visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.