Inc. (BIDU) Report Q1 Earnings, Misses Estimates

Baidu Inc, Inc. (ADR) (NASDAQ:BIDU) released its earnings report for the first three months of 2013 today, Thursday April 25, after the market closed. The company recorded earnings of $0.95 per share for the first quarter of the year, on revenue of $961.0 million On today’s market, stock in the company trended up, finishing at $92.34. Inc. (BIDU) Report Q1 Earnings, Misses Estimates

Before the release of this report, analysts were looking for earnings of $1.03 per share on revenue of $967 million. In the first three months of 2012,, Inc. (ADR) (NASDAQ:BIDU) earned 85 cents per share on revenue of $677 million. In the hours leading up to the announcement, whisper numbers indicated that the company would report EPS of $1.04, in line with analysts’ estimates.

Key indicators for, Inc. (ADR) (NASDAQ:BIDU) heading into the rest of 2013 include the performance of the company’s first piece of hardware, the Baidu Eye, a competitor to Google Glass, which might be launched before the end of the year, and the companies software offerings, like its new browser, and the performance of the company’s core business., Inc. (ADR) (NASDAQ:BIDU) has made its name by operating with a model similar to Google Inc (NASDAQ:GOOG) in one of the world’s fastest growing internet markets, China. Google Inc (NASDAQ:GOOG) pulled out of China some years back because of difficulties in dealing with that country’s government.

Despite the firm’s following of a remarkable business model, Western investors are still nervous in dealing with Chinese companies. The difficulties inherent in analyzing the Chinese market, along with several stories of investors tricked by fraudulent companies make investing in the country a difficult prospect.

In the, Inc. (ADR) (NASDAQ:BIDU) earnings report dealing with the last three months of 2012, the company put up poor results, earning $1.28 per share on revenue of $1 billion. Analysts were looking for earnings of $1.29 from the company.

One of the more interesting stories dealing with the company in recent months was a hoax. Earlier last week a press release emerged claiming that the company was planning a bid for Zynga Inc (NASDAQ:ZNGA). Though the press release turned out to be a fraud, it led to some interesting speculation about the future of the company.

So far in 2013, shares in, Inc. (ADR) (NASDAQ:BIDU) have lost more than 8 percent, lagging the Nasdaq index which made large gains in the opening months of the year. In the last twelve months, the firm’s shares have lost more than 30 percent, indicating real discomfort among investors.

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Paul Shea
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