uploads///Baidu Revenue Growth

What to Expect from Baidu’s Q1 Revenue and Earnings Growth

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Apr. 22 2019, Published 8:45 a.m. ET

Revenue growth for Baidu estimated at 16.7% in 2019

Baidu (BIDU) has seen impressive growth in its revenue over the last few years. Baidu is known as China’s Google (GOOGL), and it’s one of the top Internet stocks in the country. Analysts expect Baidu’s revenue to rise 16.7% YoY (year-over-year) to $17.79 billion in 2019 compared to $15.25 billion in 2018.

Its sales are then expected to rise 16.5% to $20.73 billion in 2020 and 14.7% to $23.77 billion in 2021. The sales of Sina (SINA), JD.com (JD), and Alibaba (BABA) are expected to rise 16%, 19.3%, and 55%, respectively, in 2019.

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Earnings expected to fall over 14% in 2019

Though Baidu’s sales are expected to rise close to 17% this year, its EPS might actually fall in 2019. Baidu’s non-generally accepted accounting principles EPS are expected to fall 14.4% in 2019 to $8.47 from $9.89 in 2018. The company’s EPS are then expected to rise 36.5% to $11.56 in 2020.

Analysts expect Baidu’s EPS to rise at a CAGR (compound annual growth rate) of just 2.8% over the next five years, far below the CAGR of 17% in its EPS in the last five years.

Profit margins

Baidu’s operating margin could contract from 19.8% in 2018 to 12.5% in 2019. The company’s operating margin is expected to expand to 18.2% in 2020 and 20% in 2021.

Its net margin is expected to contract from 27% in 2018 to 12% in 2019 and then expand to 15% in 2020 and 16% in 2021.

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