Baidu.com Mixed on EPS Blowout But Soft Outlook (BIDU)
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Chinese internet search leader Baidu.com, Inc. (NASDAQ: BIDU) has posted earnings and it showed in $0.92 non-GAAP EPS on $78.3 million in revenues. The estimates from First Call for the Chinese search engine are $0.71 EPS on $77.1 million in revenues. It also offered guidance of $73.1 to $75.1 million in revenues. While these revenue forecasts are growth of 93% to 99% year over year, First Call had estimates at $77.01 million in revenues on last look.
The company posted Traffic Acquisition Costs (TAC) of roughly $9.9 million or 12.7% of total revenues, compared to 8.7% in Q4-2006. The company also had an income tax benefit of $2.5 million. Baidu had $18.3 million in cash and equivalents on hand at the end of the quarter.
Analysts have an average price target north of $379.00, which is still roughly 50% higher than today’s prices.
Baidu’s shares closed up some 6% at $261.09 in normal trading and shares are up about 1% around $264.00 in after-hours trading. Shares were briefly higher on the higher EPS number, but that guidance figure may be some pause. Baidu.com, Inc.’s 52-week trading range is $92.80 to $429.19.
Jon C. Ogg
February 13, 2008
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