A Glimpse of Baidu's Earnings Potential

Baidu BIDU will release its quarterly earnings report on Wednesday, 2025-08-20. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Baidu to report an earnings per share (EPS) of $1.32.

The announcement from Baidu is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings History Snapshot

During the last quarter, the company reported an EPS beat by $0.59, leading to a 1.65% drop in the share price on the subsequent day.

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

Market Performance of Baidu's Stock

Shares of Baidu were trading at $90.13 as of August 18. Over the last 52-week period, shares are up 1.01%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Baidu

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Baidu.

Baidu has received a total of 7 ratings from analysts, with the consensus rating as Buy. With an average one-year price target of $110.43, the consensus suggests a potential 22.52% upside.

Peer Ratings Overview

The following analysis focuses on the analyst ratings and average 1-year price targets of Reddit, Snap and ZoomInfo Technologies, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Reddit, with an average 1-year price target of $173.27, suggesting a potential 92.24% upside.
• Analysts currently favor an Neutral trajectory for Snap, with an average 1-year price target of $9.62, suggesting a potential 89.33% downside.
• Analysts currently favor an Underperform trajectory for ZoomInfo Technologies, with an average 1-year price target of $10.5, suggesting a potential 88.35% downside.

Key Findings: Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Reddit, Snap and ZoomInfo Technologies, illuminating their respective standings within the industry. These metrics offer valuable 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 bottom compared to its peers.

Delving into Baidu's Background

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.

Breaking Down Baidu's Financial Performance

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Baidu displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 2.98%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Communication Services sector.

Net Margin: Baidu's net margin excels beyond industry benchmarks, reaching 23.78%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Baidu's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.89% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Baidu's ROA excels beyond industry benchmarks, reaching 1.75%. This signifies efficient management of assets and strong financial health.

Debt Management: Baidu's debt-to-equity ratio is below the industry average at 0.38, reflecting a lower dependency on debt financing and a more conservative financial approach.

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.