Baidu.com, Inc. (NASDAQ:BIDU) is scheduled to report its second quarter earnings on July 24 after the bell. Analysts expect the Chinese search engine giant to report a lower profit for the period. Baidu.com, Inc. (NASDAQ:BIDU) will hold a conference call at 8:00 PM. The largest Chinese search engine firm offers a wide variety of additional services as well, making it one of the most trafficked websites in China.

Baidu

Wall Street estimates for Baidu

Wall Street expects Baidu.com, Inc. (NASDAQ:BIDU) to post non-GAAP earnings per share of $1.22, with forecasts ranging from $1.13 to $1.27. The company had earned $1.24 a share in the same period last year. About three months ago, the consensus estimate was $1.34. For the full year, analysts are expecting earnings of $4.84 a share.

Analysts estimate second quarter revenues to rise about 40% to $1.2 billion from $858.7 billion in the year ago period. Full year revenues are projected at $4.86 billion. Baidu.com, Inc. (NASDAQ:BIDU) has given a Q2 revenue guidance in the range of $1.187 billion to $1.216 billion.

Baidu’s growth potential

Baidu.com, Inc. (NASDAQ:BIDU) stock currently trades at 17.5x forward earnings, giving it a forward PEG ratio of 1.17, according to Selerity Research. Its biggest competitors are Sohu.com Inc (NASDAQ:SOHU), SINA Corp (NASDAQ:SINA) and Qihoo 360 Technology Co Ltd (NYSE:QIHU). T.H. Capital said in a research report that search monopoly for Baidu.com, Inc. (NASDAQ:BIDU) is over as Qihoo 360 Technology Co. Ltd. (NYSE:QIHU) is giving it stiff competition. Though Baidu.com, Inc. (NASDAQ:BIDU) recently acquired 91 Wireless to gain exposure in the mobile market, it is losing share in online video to Youku and Sohu.com Inc. (NASDAQ:SOHU). T.H. Capital maintained a Hold rating on the stock.

Over the past few weeks, Baidu.com, Inc. (NASDAQ:BIDU) shares have been rising consistently, and got a major push after the announcement of 91 Wireless acquisition. Shares have risen more than 20% since July 3. However, analysts expect a steady downturn in the business of Baidu.com, Inc. (NASDAQ:BIDU), given the falling growth in China, increasing competition from Qihoo 360 Technology Co Ltd (NYSE:QIHU) and uncertain mobile strategy.

Baidu.com Inc. (NASDAQ:BIDU) shares were up 1.95% to $111.95 at 2:07 PM EDT.