Chinese tech giant, Baidu (NASDAQ: BIDU) gained in pre-market trading on Tuesday after reporting adjusted diluted earnings per American Depository Share (ADS) of $3.11 (RMB 22.55) in the fiscal second quarter, up by 43% year-over-year. This was above Street estimates of $2.30 per ADS.
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The company’s Q2 revenues surged by 15% year-over-year to $4.69 billion (RMB 34.1 billion), again surpassing analysts’ estimates of $4.56 billion.
Rong Luo, CFO of Baidu commented, “Baidu Core non-GAAP operating profit grew by 27% from a year ago, with non-GAAP operating margin expanding to 25% from 22% a year ago and 23% a quarter ago. Baidu Core generated about RMB9.7 billion net cash from operating activities in the quarter. The improvement in profit and margins as well as strong cash generation were primarily driven by revenue acceleration and efficiency gain.”
Analysts remain bullish about BIDU stock with a Strong Buy consensus rating based on eight Buys and one Hold.
