Baidu Lower After Q3 Report And Lower Sales Guidance

Baidu Inc (ADR) BIDU shares are trading lower by $18.38 at $242.24 in Friday's session. Early Friday morning, the Chinese web services company reported a third-quarter adjusted EPS of $3.89 that may not compare to the estimated $2.04 and the slight sales miss.

However, Baidu's lower guidance for Q4 sales in the $3.34 billion-$3.52 billion range compared to the estimate of $3.73 billion has the company deep in the red. After a lower open, it continued in that direction before finding a bottom at $240.05 and reversing course. That marks the lowest level for the stock since Sept. 27 when it bottomed at $237.20.

Since making that low, it has rebounded to make a new at $247.39 but has now been consolidating in the $243.00 handle.