Baidu.com, Inc. (ADR)(NASDAQ:BIDU) Is Consolidation Phase After Recent fall
Shares of Baidu.com, Inc. (ADR)(NASDAQ:BIDU) have been consolidating over the past one week following 11% drop in its share prices post earnings . The stock is up 1.55% at $134.76.
The stock witnessed a 10% slide before earnings as of Apr 24, 2012 and closed at $135.83 on that day. Post earnings, investors reacted negative initially as the company projected light revenue for the current quarter, and the stock gapped down by about 6%, but later on recovered most of its losses at the end of the day.
The company posted net profit of $299.0 million, up 75.90% year-over-year. On per share basis, the company earned 87 cents a share, ahead of analysts’ estimates of 84 cents a share.
Revenue during the quarter jumped 75% year-over-year to $677.1 million, in-line with analysts’ estimates of $677.51 million.
Operating profit during the quarter surged 75.10% to $332.1 million.
Online marketing revenues increased 75% to $676.5 million. Traffic acquisition cost (TAC) stood at $52.6 million.
The company projects to generate revenue of $847.2 million-$867.0 million for the second quarter of 2012, representing a 56.2% to 59.9% year-over-year increase, missing midpoint of the projected $860.2 million.
Jennifer Li, Baidu’s chief financial officer, commented, “We kept up our pace of investment in talent and network infrastructure in the first quarter in support of our long-term growth initiatives. We are committed to this aggressive investment strategy for the year ahead and will maintain our focus on managing operational efficiency to ensure sustainable growth.”
The stock has outperformed the broader market so far this year and jumped 15%, but down over 15% over the past one year. The stock has a 52-week range of $100.95-$165.96. The stock is trading above 200-Day Moving Average of $133.23, but below its 50-Day Moving Average of $142.98.