Baidu (NASDAQ: BIDU) and Tencent (OTC: TCEHY), two of the largest tech companies in China, both recently posted their second-quarter earnings. And there was a stark difference between the two reports.
Baidu's revenue dipped 1% annually and missed analysts' expectations, but its 46% jump in adjusted earnings beat estimates. Tencent's revenue and adjusted earnings rose 29% and 28%, respectively, easily clearing expectations on the top and bottom lines.
Baidu's bottom line beat was driven by a significant reduction in its expenses, as it focused on "optimizing profitability over revenue growth." Meanwhile, Tencent generated robust double-digit growth across its core gaming, advertising, and fintech and business services units.
Source Fool.com