Earnings Preview: Baidu

Baidu BIDU is set to give its latest quarterly earnings report on Wednesday, 2025-05-21. Here's what investors need to know before the announcement.

Analysts estimate that Baidu will report an earnings per share (EPS) of $1.79.

Anticipation surrounds Baidu's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Performance in Previous Earnings

Last quarter the company beat EPS by $0.85, which was followed by a 2.36% drop in the share price the next day.

Here's a look at Baidu's past performance and the resulting price change:

Tracking Baidu's Stock Performance

Shares of Baidu were trading at $89.25 as of May 19. Over the last 52-week period, shares are down 12.57%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Analyst Observations about Baidu

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Baidu.

Baidu has received a total of 3 ratings from analysts, with the consensus rating as Buy. With an average one-year price target of $108.33, the consensus suggests a potential 21.38% upside.

Peer Ratings Comparison

The analysis below examines the analyst ratings and average 1-year price targets of Reddit, Snap and Grindr, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Reddit, with an average 1-year price target of $153.25, suggesting a potential 71.71% upside.
• Analysts currently favor an Neutral trajectory for Snap, with an average 1-year price target of $9.57, suggesting a potential 89.28% downside.
• Analysts currently favor an Outperform trajectory for Grindr, with an average 1-year price target of $24.25, suggesting a potential 72.83% downside.

Insights: Peer Analysis

Within the peer analysis summary, vital metrics for Reddit, Snap and Grindr are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Baidu ranks at the top for Revenue Growth among its peers, with a growth rate of 15.54%. It also leads in Gross Profit, with a total of $655.72M. However, Baidu has the lowest Return on Equity at 0.19% compared to its peers. Overall, Baidu is positioned favorably in terms of revenue and profit metrics but lags behind in return on equity.

Get to Know Baidu Better

Baidu is the largest internet search engine in China with over 50% share of the search engine market in 2024 per web analytics firm, Statcounter. The firm generated 72% of core revenue from online marketing services from its search engine in 2023. Outside its search engine, Baidu is a technology-driven company and its other major growth initiatives are artificial intelligence cloud, video streaming services, voice recognition technology, and autonomous driving.

Key Indicators: Baidu's Financial Health

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, Baidu faced challenges, resulting in a decline of approximately -2.37% in revenue growth as of 31 December, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Communication Services sector.

Net Margin: Baidu's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 13.49%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.76%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Baidu's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.09%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.3.

To track all earnings releases for Baidu visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.