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Can a Diverse Portfolio Drive Baidu's (BIDU) Q1 Earnings?
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Baidu, Inc. (BIDU - Free Report) is scheduled to report first-quarter 2018 results on Apr 26.
The company topped the Zacks Consensus Estimate in the trailing four quarters, with an average positive earnings surprise of 43.3%.
In the last reported quarter, Baidu delivered a positive earnings surprise of 11.71%. Earnings of $2.29 per share surged 19.9% on a year-over-year basis but declined 41.1 sequentially.
Revenues increased 38.2% year over year and 2.5% sequentially to $3.62 billion. The figure also surpassed the Zacks Consensus Estimate of $3.56 billion. Top-line growth was driven by increase in the active online marketing customers, which reflected 25% year-over-year growth in the revenue per online marketing customer.
Shares of Baidu have returned 22.3% over a year, outperforming the industry’s decline of 0.6%.
Product Portfolio & Partnerships to Drive Results
Baidu’s continuous efforts to strengthen its mobile search engine and AI technologies are likely to drive top-line growth. Strong focus on leveraging AI platform is helping to provide an improved user experience.
Recently, Baidu teamed up with Skyworth, an electrical household appliance maker to roll out a fully-integrated in-home ecosystem powered by artificial intelligence.
Early this year, the company introduced three new Chinese emojis and will be available on emoji dictionary which is shared across almost all smartphones and computer platforms worldwide. This will enhance the search results on Baidu’s platform, courtesy of the rising demand for emojis.
The company also teamed up with BlackBerry (BB - Free Report) to improve the deployment of connected and autonomous vehicle technology for automotive OEMs and suppliers worldwide. The partnership will also enable the integration of Baidu's Apollo, CarLife and DuerOS with BlackBerry’s QNX Car. This is likely to boost the partner base of Apollo in the soon-to-be reported quarter.
Further, Baidu, NVIDIA (NVDA - Free Report) and ZF have partnered for creating a production-ready AI autonomous vehicle platform for China. This collaboration is based on Baidu’s Apollo Pilot. Baidu also introduced a major update to its DuerOS platform with enriched solutions like Bot platform for developers and an improved voice interaction experience.
Hence, we believe Baidu’s strong focus toward product innovation and expansion is likely to benefit its first-quarter results.
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Baidu has an unfavorable combination of a Zacks Rank #3 and Earnings ESP of -1.30%. Though the company’s favorable rank increases the odds of a beat, its negative ESP makes earnings surprise prediction difficult.
Stock That Warrants a Look
Here is stock worth considering as our model shows that this has the right combination of elements to deliver an earnings beat in the upcoming releases.
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Image: Bigstock
Can a Diverse Portfolio Drive Baidu's (BIDU) Q1 Earnings?
Baidu, Inc. (BIDU - Free Report) is scheduled to report first-quarter 2018 results on Apr 26.
The company topped the Zacks Consensus Estimate in the trailing four quarters, with an average positive earnings surprise of 43.3%.
In the last reported quarter, Baidu delivered a positive earnings surprise of 11.71%. Earnings of $2.29 per share surged 19.9% on a year-over-year basis but declined 41.1 sequentially.
Revenues increased 38.2% year over year and 2.5% sequentially to $3.62 billion. The figure also surpassed the Zacks Consensus Estimate of $3.56 billion. Top-line growth was driven by increase in the active online marketing customers, which reflected 25% year-over-year growth in the revenue per online marketing customer.
Shares of Baidu have returned 22.3% over a year, outperforming the industry’s decline of 0.6%.
Product Portfolio & Partnerships to Drive Results
Baidu’s continuous efforts to strengthen its mobile search engine and AI technologies are likely to drive top-line growth. Strong focus on leveraging AI platform is helping to provide an improved user experience.
Recently, Baidu teamed up with Skyworth, an electrical household appliance maker to roll out a fully-integrated in-home ecosystem powered by artificial intelligence.
Early this year, the company introduced three new Chinese emojis and will be available on emoji dictionary which is shared across almost all smartphones and computer platforms worldwide. This will enhance the search results on Baidu’s platform, courtesy of the rising demand for emojis.
The company also teamed up with BlackBerry (BB - Free Report) to improve the deployment of connected and autonomous vehicle technology for automotive OEMs and suppliers worldwide. The partnership will also enable the integration of Baidu's Apollo, CarLife and DuerOS with BlackBerry’s QNX Car. This is likely to boost the partner base of Apollo in the soon-to-be reported quarter.
Further, Baidu, NVIDIA (NVDA - Free Report) and ZF have partnered for creating a production-ready AI autonomous vehicle platform for China. This collaboration is based on Baidu’s Apollo Pilot.
Baidu also introduced a major update to its DuerOS platform with enriched solutions like Bot platform for developers and an improved voice interaction experience.
Hence, we believe Baidu’s strong focus toward product innovation and expansion is likely to benefit its first-quarter results.
Baidu, Inc. Price and EPS Surprise
Baidu, Inc. Price and EPS Surprise | Baidu, Inc. Quote
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Baidu has an unfavorable combination of a Zacks Rank #3 and Earnings ESP of -1.30%. Though the company’s favorable rank increases the odds of a beat, its negative ESP makes earnings surprise prediction difficult.
Stock That Warrants a Look
Here is stock worth considering as our model shows that this has the right combination of elements to deliver an earnings beat in the upcoming releases.
Agilent Technologies (A - Free Report) has an Earnings ESP of +3.72% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>