(BIDU) Q1 Finanical Results Surge, But Stock Hit As Investors Wanted More Upside

April 24, 2012 4:29 PM EDT (NASDAQ: BIDU) shares are under heavy pressure after-hours Tuesday as a surge in first quarter sales and profit was not enough to inspire buyers as they were just in-line with Wall Street views.

The Chinese search giant reported that revenue rose 75% to RMB4.264 billion, or $677.1 million. This compared to the consensus of $677.5 million.

Operating profit rose 75.1% to RMB2.091 billion, or $332.1 million. Net income attributable to Baidu rose 75.9% to RMB1.883 billion, or $299.0 million. Diluted EPS was $0.87, or $0.03 better than the analyst estimate of $0.84.

"We've started the year with solid financial results and steady business progress," said Robin Li, chairman and chief executive officer of Baidu. "Although this is usually a seasonally slow quarter, our effective sales and marketing efforts enabled us to expand our SME customer base significantly."

Mr. Li continued, "China's Internet landscape is evolving quickly and we are very excited about fast-emerging opportunities in areas such as mobile and Cloud Computing. We believe that Baidu is uniquely positioned to capture this immense growth potential in the Chinese online market."

Baidu sees Q2 revs of $847.2 million - $867 million, versus the consensus of $860.16 million. This represents 56.2% to 59.9% year-over-year increase.

Shares of BIDU last traded at $124.27, down 8.5 percent from Tuesday's close.

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