Baidu.com Down More After Earnings
Sometimes beating earnings just isn't good enough. If you owned Baidu.com (BIDU) going into earnings today you know what that means. BIDU posted EPS of $0.37, $0.10 better than the $0.27 estimate. Revenues beat also at $30.3 million, but not by as wide of a margin with consensus revenues at $30.2 million. The revenue guidance was the disappointment with the company saying $34 million to $35 million was expected, but consensus is $36.25 million.
The sad thing is that this was the springloaded year, because its revenues were up 170% year-over-year and earnings were up essentially tenfold.
The street was already nervous ahead of the report, because shares of BIDU were down 9%, or -$8.72, to $87.28. Shares are down another -4.2% to $83.65 in after-hours trading. Its 52-week trading range is $44.44 to $96.67, although it looks like shortly after the open today it had traded as high as $99.00.
BIDU still carries a triple-digit P/E on a trailing basis. If you use the $83.65 after-hours price and company meets the $0.91 EPS target for 2006 and the $1.70 target for 2007 it has forward P/E's of 91.9 for 2006 and 49.2 for 2007. We would have adjusted the EPS target up except for the guidance miss on revenues.
Baidu.com is still listed as the #4 site as far as web traffic out of Alexa's Top 500.
Jon C. Ogg
The sad thing is that this was the springloaded year, because its revenues were up 170% year-over-year and earnings were up essentially tenfold.
The street was already nervous ahead of the report, because shares of BIDU were down 9%, or -$8.72, to $87.28. Shares are down another -4.2% to $83.65 in after-hours trading. Its 52-week trading range is $44.44 to $96.67, although it looks like shortly after the open today it had traded as high as $99.00.
BIDU still carries a triple-digit P/E on a trailing basis. If you use the $83.65 after-hours price and company meets the $0.91 EPS target for 2006 and the $1.70 target for 2007 it has forward P/E's of 91.9 for 2006 and 49.2 for 2007. We would have adjusted the EPS target up except for the guidance miss on revenues.
Baidu.com is still listed as the #4 site as far as web traffic out of Alexa's Top 500.
Jon C. Ogg
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