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.com, Inc. (BIDU) 2Q Earnings Expected To Decline

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.