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What Do Analysts Expect from Baidu in Q1 2019?

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Updated

Revenue growth estimated at 30% in the first quarter 

Chinese (FXI) Internet giant Baidu (BIDU) is set to announce its first-quarter earnings results on April 25, 2019. Analysts expect the company to post sales of $3.61 billion in the quarter, a rise of 20% YoY (year-over-year) compared to its sales of $3.01 billion in the first quarter of 2018.

The sales of peer companies JD.com (JD), Alibaba (BABA), and Sina (SINA) are expected to rise 24%, 53%, and 8.3% respectively, in the first quarter.

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Earnings growth expected to fall significantly

Despite its impressive revenue growth estimates, Baidu’s non-generally accepted accounting principles EPS are expected to fall 62% YoY from $1.88 in the first quarter of 2018 to $0.71 in the first quarter of 2019.

Baidu has managed to beat analysts’ earnings estimates in each of the last four quarters. The company posted EPS of $1.97 in the fourth quarter of 2018, 12% higher than analysts’ estimate of $1.76. It posted EPS of $2.75 in the third quarter of 2018, 13.6% higher than the estimate of $2.42.

As the chart above shows, Baidu exceeded its earnings estimate of $2.39 with earnings of $3.03 in the second quarter of 2018. The company also exceeded analysts’ consensus earnings estimate of $1.52 by 24% with EPS of $1.88 in the first quarter of 2018.

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