Baidu (NASDAQ:BIDU) reported its second quarter earnings today. The company handily beat analyst expectations of net income. Baidu's reported revenues met analyst expectations. The tech behemoth reported adjusted Q2 EPS of $2.36, up roughly 143% year-over-year from 2016 Q2 EPS (.97 on revenue of $2.7 billion). In the most recent quarter, Baidu reported revenue increasing 14% to $3.08 billion. Analysts expected Baidu to report earnings of $1.51 per share on sales of $3.08 billion for the period ended June 30.
Q2 2017 Expected Net Income per Share: $1.51
Realized Net Income per Share: $2.36
Q2 2017 Expected Total Revenue: $3.08 billion
Realized Total Revenue: $3.08 billion
Since our article on Baidu's open-source self-driving cars initiative (from April 19th, 2017), Baidu stock continues to be on our Bullish List. Shares of Baidu traded around $175 per share when we initiated our buy rating on Baidu stock.
Other Items in Baidu Q2 Earnings Report
Baidu noted in its Q2 earnings report that mobile ad sales accounted for about 72% of total revenue. In Q2 of 2016, mobile ad sales accounted for 62% of total revenue. In addition, the company gave its revenue forecast. For the current quarter, Baidu expects total revenue in the range of $3.41 billion to $3.5 billion vs. consensus estimates of $3.43 billion.
In a press release coinciding with the earnings report, the company's President made the following statement:
BIDU Stock Rating
The Stock Trader Blog maintains our buy rating for Baidu stock, especially after the Baidu Q2 earnings report discussed above. We believe the company will continue to experience both top line and bottom line growth, due to its smart investments and strong financial performance. Moreover, Baidu is one of the strongest companies on the frontier of innovation.