Baidu Net Income Jumps 42% but Warns of New Technology hurting Guidance (BIDU)

Tue. October 27, 2009; Posted: 06:56 AM

Oct 27, 2009 (SmarTrend(R) News Watch via COMTEX) -- BIDU | Quote | Chart | News | PowerRating -- 10/26/2009-Baidu (NASDAQ:BIDU) reported Q3 EPS of $2.16, topping consensus estimates of $1.77. Revenues in the quarter rose 39.1% year-over-year to $187.3 million, and came in ahead of consensus estimates of $186.5 million. Baidu reported Q3 online marketing revenues of $187.2 million USD, representing a 39.2% increase from the year-ago period. Meanwhile, the Beijng based company reported traffic acquisition cost (TAC) as a component of cost of revenues of $28.7 million USD, representing 15.3% of total revenues, versus 11.8% in the year-ago period and 16.0% in Q2 of 2009.

"Baidu expects moderate year-over-year growth for the fourth quarter of 2009 due to the temporary negative impact anticipated when the Online Marketing Classic Edition is discontinued... Given the above considerations, Baidu currently expects to generate total revenues in an amount ranging from RMB1,190 million ($174 million) to RMB1,230 million ($180 million) for the fourth quarter of 2009, representing 32% to 36% year-over-year growth. This forecast reflects Baidu's current and preliminary view, which is subject to change." Analysts, on average, were projecting Q4 revenues of $196.3 million USD.

Write to Chip Brian at cbrian@tradethetrend.com

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