Q4 Preview: A Good Baidu (BIDU) Ahead of Earnings?
Tweet
Share
E-mail
Get Alerts BIDU Hot Sheet
Join SI Premium – FREE
Baidu, Inc. (Nasdaq: BIDU) is trading higher ahead of the company's fourth quarter earnings release, expected out after the market closes. Shares are up 0.6% today.
The company is expected to report EPS of $0.46 on revs of $360.82 million. Last quarter, the Beijing-based search company posted EPS of $0.46, excluding certain items, on revenues of $337.2 million, both edging out Street views. Looking back at Q409, Baidu reported an adjusted EPS of $1.88 on revs of $184.7 million, topping consensus views calling for EPS of $1.68 on $180 million in revs.
Shares fell 2.3% through the quarter, to $96.53 at the end of December. The stock is up 11.5% since then, and closed out 2010 about 135% better (on an adjusted basis).
A simple valuation puts BIDU with a forward P/E of 44.9x FY11 EPS estimates, compared to 41.1x for Sina Corp. (Nasdaq: SINA), 16.9x at Sohu.com (Nasdaq: SOHU), and 15x for Google, Inc. (Nasdaq: GOOG).
Data from Bloomberg has 21 analysts with a Buy on Baidu, 7 with a hold, and two suggesting to Sell. The analyst price target average is $126, with a high of $150 and low of $100. Shares have traded in a range of $115.04 - $41.68 over the last 52-weeks.
Summary
Baidu issued guidance with their Q310 earnings release. At the time, Baidu was looking for sales of $354 - $364.7 million, ahead of the $348.5 million Street view.Deutsche Bank recently raised estimates on BIDU following a visit to Qiyi during a Beijing trip. They said that Qiyi's focus on premium content keeps users on the site 115 minutes per day on average. DB thinks "believe Qiyi’s existing traffic scale and ability to keep users ”on-site” offer a strong value proposition to advertisers."
Deutsche has a $100 price target on the company, with a Hold rating.
Kaufman is looking for more of an in-line Q410 report, along with conservative Q111 revenue guidance. Kaufman is looking for Q4 revs of $362 million, EPS of $\0.46, and 13,000 net adds. Revenue per customer should be up 54% from Q409, and 3% sequentially.
Kaufman notes that China's search ad revenue market grew 73% in Q409, compared to 53% in Q310, 53% in Q210, and 40% in Q111. Overall, the market was up 56% on the year, compared to FY09.
The firm is expecting a strong FY11 outlook based on "1) latest iResearch China search market forecast of 55% Y/Y constant currency growth in 2011 and 2) China SEMs' comments in [their] channel checks around their expectations of search spend accelerating in 2011 vs. 2010."
Kaufman has a Buy on the shares, with a price target of $118.Baidu, Inc. is expected to release their Q111 earnings on Monday, January 31, 2011, at approximately 4:00pm EST. Stay tuned to StreetInsider.com's EPS Insider section to see our analysis of the highly-anticipated quarterly results withi0 n seconds of their release.
The company is expected to report EPS of $0.46 on revs of $360.82 million. Last quarter, the Beijing-based search company posted EPS of $0.46, excluding certain items, on revenues of $337.2 million, both edging out Street views. Looking back at Q409, Baidu reported an adjusted EPS of $1.88 on revs of $184.7 million, topping consensus views calling for EPS of $1.68 on $180 million in revs.
Shares fell 2.3% through the quarter, to $96.53 at the end of December. The stock is up 11.5% since then, and closed out 2010 about 135% better (on an adjusted basis).
A simple valuation puts BIDU with a forward P/E of 44.9x FY11 EPS estimates, compared to 41.1x for Sina Corp. (Nasdaq: SINA), 16.9x at Sohu.com (Nasdaq: SOHU), and 15x for Google, Inc. (Nasdaq: GOOG).
Data from Bloomberg has 21 analysts with a Buy on Baidu, 7 with a hold, and two suggesting to Sell. The analyst price target average is $126, with a high of $150 and low of $100. Shares have traded in a range of $115.04 - $41.68 over the last 52-weeks.
Summary
Baidu issued guidance with their Q310 earnings release. At the time, Baidu was looking for sales of $354 - $364.7 million, ahead of the $348.5 million Street view.
Deutsche has a $100 price target on the company, with a Hold rating.
Kaufman notes that China's search ad revenue market grew 73% in Q409, compared to 53% in Q310, 53% in Q210, and 40% in Q111. Overall, the market was up 56% on the year, compared to FY09.
The firm is expecting a strong FY11 outlook based on "1) latest iResearch China search market forecast of 55% Y/Y constant currency growth in 2011 and 2) China SEMs' comments in [their] channel checks around their expectations of search spend accelerating in 2011 vs. 2010."
Kaufman has a Buy on the shares, with a price target of $118.Baidu, Inc. is expected to release their Q111 earnings on Monday, January 31, 2011, at approximately 4:00pm EST. Stay tuned to StreetInsider.com's EPS Insider section to see our analysis of the highly-anticipated quarterly results withi0 n seconds of their release.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
- Deutsche Bank monitors UK auto sales as Chinese exports grow
- Investing.com’s stocks of the week
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
Deutsche Bank, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
