Baidu.com, Inc. (ADR)(NASDAQ:BIDU) Shares Fall Over 11% In 2-Week
Baidu.com, Inc. (ADR)(NASDAQ:BIDU) shares have been under selling pressure Apr 16, 2012, when the stock was trading at $151.38. Since then, the stock has lost over 11% to at current market price of $134.06.
The company witnessed a 10% fall ahead of its 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 reported 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 soared 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.”
Shares of BIDU were recently up 0.65% at $134.06. 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.