What to Expect From Baidu's Second-Quarter Earnings Report
Baidu's (NASDAQ: BIDU) stock has been cut in half over the past 12 months as concerns about the search leader's slowing growth, rising expenses, and inability to counter disruptive rivals like Tencent (OTC: TCEHY) and ByteDance have piled up.
The economic slowdown in China and the ongoing trade war exacerbated that pain, and a surprise loss in the first quarter -- the company's first loss since its 2005 IPO -- seemed to confirm those fears. Baidu and analysts have set the bar pretty low going into the Aug. 19 second-quarter report.
Revenue rose 15% annually in the first quarter, but the company expects a more muted result in the second quarter. Excluding the impact of upcoming divestments, it anticipates 1%-6% sales growth. Baidu didn't offer any bottom-line guidance, but analysts expect its earnings per ADS to decline about 72%.
Source Fool.com
