Baidu Gets Bump as Revenue Climbs 60%
NEW YORK (TheStreet) -- Shares of Chinese Internet giant Baidu(ZNGA) jumped in late trades Monday following a strong second-quarter earnings report.
Baidu, which derives a significant portion of its revenues from search advertising similar to Google(GOOG) , reported second-quarter earnings of $1.26 per share on $858.8 million in revenue, an increase of 59.8% year-over-year.
Analysts polled by Thomson Reuters expected the Chinese-based Internet company to generate a profit of $1.12 per share on $850.8 million in revenue.
Chairman and CEO Robin Li was pleased with the quarterly results but acknowledged the impact of macro headwinds. Li said the company plans to continue to expand its sales processes.
"In the coming quarters, we will maintain momentum by rolling out optimized sales processes and more advanced tools to help current and potential customers increase returns on their online marketing spend," Li said in a press release. "We will also continue to actively explore the vast opportunities in China's fast-emerging mobile Internet and cloud sectors."
For the third-quarter, Baidu forecast revenue of $983 million and $1.01 billion. The current consensus view is for revenue of $992.7 million in the September-ending quarter.
Shares of Baidu closed down sharply in Monday's regular trading, off 2.84% to wind up at $107.10. The stock rocketed higher in after-hours action, up 5% to $112.41, according to Nasdaq.com.
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--Written by Chris Ciaccia in New York
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