Baidu turns bullish on strong second-quarter outlook

May 2, 2016
Baidu turns bullish on strong second-quarter outlook August 9, 2018 Clive Nelson https://plus.google.com/110107075468979879828/

BaiduOn Thursday last week, the internet search engine Baidu (BIDU) reported a 24.3% rise in the fiscal 2016 first-quarter revenue. Following the results, the shares of Baidu gained 4.45% to close at $194.30 on Friday. Considering the impressive mobile revenue growth and strong second-quarter guidance, the shares are expected to gain further.

During the fiscal 2016 first-quarter, Baidu recorded revenue of $2.454 billion (15.82 billion Yuan), up 24.3% from $1.96 billion (12.72 billion Yuan) in the similar period last year. The analysts’ had estimated revenue of 15.86 billion Yuan.

For the first-quarter, the net income of Baidu was $308.10 million (1.987 billion Yuan) or $0.84 (5.40 Yuan) per share, down 18.9% from the corresponding period of 2015.

The earnings estimate of analysts’ was 1.91 billion Yuan.

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The non-GAAP net income for the fiscal 2016 first quarter was $365.8 million (2.359 billion Yuan) or $1.06 (6.80 Yuan), down 13.9% from the year-ago similar period. As far as mobile search is concerned, the company stated that the monthly active users (MAU) were 663 million in March, up 9% on a y-o- y basis. Likewise, the MAUs of mobile maps stood at 321 million in March. This reflects a 19% increase on a y-o- y basis. In the fiscal 2016 first quarter, the mobile revenue contributed 60% of the total revenues of Baidu. The contribution was 50% in the first quarter of 2015. In the first quarter, the gross merchandise value (GMV) of transaction services touched a new high of $2.5 billion (16 billion Yuan), representing a 268% increase on a y-o- y basis.

Baidu also announced that the wallet activated accounts hit a new milestone of 65 million in March, up 152% on a y-o- y basis. The company also stated that the recent funding of its food delivery business was based on an estimated enterprise value of $2.5 billion.

For the second quarter, the company anticipates a 21.3% to 24.2% increase (y-o- y basis) in revenue. This translates to revenue in the range of $3.119 billion (20.11 billion Yuan) to $3.192 billion (20.58 billion). Excluding Qunar (online travel company sold to Ctrip in October, 2015), the outlook reflects a 28.1% to 31.1% rise in revenue on a y-o- y basis. The analysts anticipate revenue of $3.1 billion for the second-quarter.

The chart of Baidu stock indicates that the resistance zone exists between 195 and 200. On the downside, support for the stock exists at 168 levels. The RSI indicator is pointing upwards and has a reading of over 50. Thus, we can expect the stock to break the resistance in the coming days.

Baidu Stock Price: May 2nd 2016

Baidu Stock Price: May 2nd 2016

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About the Author

Clive Nelson

Clive Nelson Author

Hi, my name is Clive Nelson and welcome to Traders Bible. Just to tell you bit about myself…I have been trading FX and binary options for the best part of 10 years now. After graduating with honours in economics, I began working for an investment bank in New York as an assistant trader before working my way up. After a few years, I went on to work as a broker in London, England and then eventually came back to the U.S to work in a hedge fund, where I manage $800 million of my clients’ investments. There have been times over the course of my career where I’ve had to take a hit, but I’ve accepted that losing is part of the game, it’s a learning curve. I’ve learnt from my mistakes and you don’t have to make the same errors I did. A lot of my education came from when I was a broker and this is why I’m here to tell you that Traders’ Bible offers you the foundations of how to become a great trader.


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