Baidu.com (BIDU) Tops Q4 EPS by 19c
Baidu.com (NASDAQ: BIDU) reported Q4 EPS of $2.29, $0.19 better than the analyst estimate of $2.10. Revenue for the quarter came in at $3.62 billion versus the consensus estimate of $3.64 billion.
Financial Guidance
For the first quarter of 2018, Baidu expects net revenues to be between RMB19.86 billion ($3.05 billion) and RMB20.97 billion ($3.22 billion), representing a 25% to 32% increase year over year. Excluding disposed businesses, such as mobile games and Baidu Deliveries, the guidance represents a 29% to 36% increase year over year. This forecast reflects Baidu's current and preliminary view, which is subject to substantial uncertainty.
Starting on January 1, 2018, Baidu adopted a new revenue accounting standard (ASC 606). The most significant impact will be the reclassification of value added tax from cost of revenues to net against revenues. If presented net of value added tax, revenues for fiscal 2017 would have been approximately 5.6% lower than currently presented. The above guidance reflects Baidu's new reporting requirement. If presented on the same basis as 2017, gross revenues are expected to be between RMB 21.05 billion ($3.24 billion) and RMB22.23 billion ($3.42 billion), representing a 25% to 32% increase year over year.
(Street sees Q1 EPS of $1.70 on revenue of $3.33 billion)
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