Chinese web giant misses on earnings
TAIPEI— Baidu Inc. posted secondquarter earnings that missed analysts’ estimates, sending shares of China’s largest Internet search provider down in late U.S. trading.
Earnings were $1.81 (U.S.) per ADS excluding some items, Baidu said in a statement, compared with the $1.88 average of analysts’ predictions compiled by Bloomberg. The company forecast revenue of $2.93 billion to $3 billion, trailing estimates of $3.03 billion. The shares fell as much as 9.5 per cent to $178.86 after the U.S. markets closed.
Founder Robin Li is pushing a catalogue of new products to engage smartphone users and attract more advertisers as traditional use of personal computers shifts to mobile platforms. Baidu and rivals including Tencent Holdings Ltd. are spending more to build mobile and online-to-offline businesses such as the Nuomi group-buying service and mobile wallets.
Revenue rose 38 per cent to 16.6 billion yuan ($3.48 billion Canadian) compared with the company’s April forecast of 16.365 billion yuan to 16.750 billion yuan. Mobile accounted for 50 per cent of sales, in line with the prior quarter, Baidu said.
Baidu is increasing its marketing budget to drive traffic during specific periods such as springtime travel and shopping seasons. It’s also spending more money to develop mobile products and on content for its IQiyi video service.
Baidu is said to be in talks to buy a new stake in the local unit of carbooking provider Uber Technologies Inc., adding to its investment in the company’s global operations.