Baidu Reports 62% Profit Drop
August 19 2019 - 5:39PM
Dow Jones News
By Maria Armental
China's economic downturn and tighter control over internet
content drove search-engine giant Baidu Inc.'s weakest quarterly
revenue growth in more than two years and a 62% profit drop.
Still, results for the latest quarter beat Wall Street targets,
sending shares up more than 9% to $114.04 in after-hours
trading.
Baidu, which has been trying to diversify from its core
search-engine business, projected another difficult quarter with
about 26.9 billion yuan to 28.5 billion yuan in revenue ($3.84
billion to $4.07 billion). That would equate to a decline of up to
5% to an increase of 1% at best, the company said, missing
analysts' projected 28.13 billion yuan, according to FactSet.
Second-quarter profit dropped to 2.41 billion yuan or 6.57 yuan
an American depositary receipt, largely tied to video-streaming
service iQiyi. Excluding stock-based compensation and other items,
profit fell to 10.11 yuan an ADR from 21.06 yuan an ADR a year
earlier.
Analysts expected 3.40 yuan an ADR, or 6.18 yuan on an adjusted
basis, according to FactSet data.
Revenue revenue rose 1.4% to 26.33 billion yuan beating
analysts' projected 25.8 billion yuan.
Baidu had forecast 25.1 billion yuan to 26.6 billion yuan.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
August 19, 2019 17:24 ET (21:24 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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