Baidu Earnings Miss Expectations, Sales Decline

Chinese Internet search leader Baidu reported its first sequential sales decline since going public in the United States in 2005, and forecast weaker-than-expected sales in the current
quarter.

Ng Han Guan / AP

Baidu said its fourth-quarter net profit rose to $42.3 million (288.7 million yuan), or $1.22 a share, from $30.1 million, or 87 cents a share, in the same period last year.

Earnings excluding special items were $1.31 per share, short of the average analyst forecast of $1.42 according to Reuters Estimates.

Revenue was $132.2 million, up 58 percent year-over-year but down roughly 2 percent sequentially, compared with the dampened Wall Street estimate of $133 million.

Baidu cut its fourth-quarter sales estimate in December, citing the slowdown in China's economy and the company's decision to remove paid listings from medical and pharmaceutical firms for which it did not have licenses on file.

In the first quarter, Baidu said sales will range between $114 million and $117 million, compared with the $119.5 million expected by analysts, according to Reuters Estimates.

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Baidu trails Google and Yahoo in market share in the worldwide search market, but is the No.1 player in China, according to comScore.

Shares of Baidu fell to $127.65 from $128.09 in after-market trade.

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