uploads///Baidu inc

Will Baidu’s Q4 Revenue Hit Target?


Jan. 29 2019, Updated 1:06 p.m. ET

Up to $3.9 billion of revenue expected

Baidu (BIDU) is gearing up to report its results for the fourth quarter of 2018 on February 12. In October last year, Baidu issued fourth-quarter revenue guidance in the range of $3.7 billion to $3.9 billion. On Wall Street, the consensus estimate calls for Baidu to report fourth-quarter revenue of $3.9 billion, indicating revenue growth of 20% YoY.

Baidu generated revenue of $3.6 billion in the fourth quarter of 2017, missing the consensus estimate by $20 million. The company generated revenue of $2.6 billion in the fourth quarter of 2016, missing consensus estimates by $50 million.

Article continues below advertisement

Baidu surpassed the consensus revenue estimate in the third quarter

While Baidu missed fourth-quarter revenue expectations in the last two years, the company consistently beat revenue expectations in the last three quarters. In the third quarter of 2018, the most recent reported period, Baidu’s revenue rose 27% YoY to $4.1 billion, surpassing consensus estimates by $40 million. Alphabet (GOOGL) and Yandex (YNDX) grew their third-quarter revenues by 21% and 39% YoY, respectively. Revenue rose 54% YoY at Alibaba (BABA) and 24% YoY at Tencent (TCEHY) in the third quarter.

Advertising is Baidu’s bread and butter

Baidu currently generates the vast majority of its revenue from advertising, with advertising sales accounting for 80% of total revenue in the third quarter. China’s digital advertising market is estimated to have expanded around 27% last year, according to data from eMarketer. Baidu is China’s top Internet search engine company, placing it in a great position to capitalize on the growth of the country’s digital advertising market.


More From Market Realist

  • Bitski art and logo
    Company & Industry Overviews
    NFT Platform Provider Bitski Isn’t Publicly Traded
  • who are palantir customers
    Company & Industry Overviews
    Palantir Customers Are Large Defense and Commercial Institutions
  • Grain trucks waiting to be loaded and Archer Daniels logo
    Company & Industry Overviews
    Archer Daniels Stock Is a Buy Amid Price Dip and Big Announcement
  • SemiLEDS logo over LED lighting
    Company & Industry Overviews
    There's Still Time to Get in on SemiLEDS (LEDS) Stock
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.