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Baidu.com, Inc. (BIDU) Q2 Earnings Beat Estimates, Stock Jumps 15%

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Baidu.com, Inc. (NASDAQ:BIDU) released its earnings report for the second quarter of 2013 this afternoon after the market closed. The Chinese search giant reported income of $1.26 per share for the three months period, earned on revenue of $1.2 billion. On today’s market Baidu.com, Inc. (NASDAQ:BIDU) stock did very well, gaining to finish the day at $113.37 per share.

Baidu.com, Inc. (BIDU) Q2 Earnings Beat Estimates, Stock Jumps 15%

In the run up to the announcement of the earnings figures, analysts following Baidu.com, Inc. (NASDAQ:BIDU) were looking for earnings per share of $1.21 for the three months April-June. Consensus revenue estimates for the period came in at $1.2 billion. In the second quarter of 2012, Baidu.com, Inc. (NASDAQ:BIDU) earned $1.24 per share on revenue of $854 million.

Baidu.com on a rollercoaster

Baidu.com, Inc. (NASDAQ:BIDU) has had a fairly inconsistent year on the stock market with share prices rising appreciably into the release of a disappointing earnings report and falling as a result of that release. The company’s share price reached levels just above $90 per share before a second disappointing earnings release in April.

In anticipation of this earnings report the company’s price has risen significantly. Since July 8, when the price rises began, investors have seen the company’s shares gain more than 3%. The buy ins in the last few weeks have included a significant amount of options of various types being exercised.

Baidu has a Google-like grip on China’s online services

Baidu.com, Inc. (NASDAQ:BIDU) is set to continue to expand its revenue and earnings as China become a more and more connected society. Baidu has a Google-like grip on some of the country’s services, meaning that expansions in the country’s online activity will directly lead to expansions in Baidu.com, Inc. (NASDAQ:BIDU) revenue.

There are risk factors, of course, but analysts are expecting, by consensus, that the company should earn $4.98 per share in 2013, off a base of $4.79 in 2012, and $6.17 per share in 2014. If Baidu.com, Inc. (NASDAQ:BIDU) continues on this track it may well be able to shield China from Google should the California market try to enter that market once again.


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