Baidu Profit Rises, Outlook Strong; Shares Up 11%

(RTTNews) - Chinese internet-search giant Baidu Inc. (BIDU), Thursday reported an increase in profit for the fourth quarter, as revenues jumped 33 percent, with both earnings and revenues trumping Street estimates. Baidu's shares gained over 11 percent in after-hours trade, after its outlook for the first quarter was ahead of current Street expectations.

Beijing-based Baidu's fourth-quarter profit rose to 24.71 billion yuan or 70.92 yuan per share from 3.24 billion yuan or 9.03 yuan per share last year.

Adjusted earnings for the quarter 71.90 yuan per share. Excluding a gain recognized in Baidu's exchange of Qunar Cayman Islands Ltd. shares with Ctrip.com International Ltd., earnings were 7.61 yuan per share. Analysts polled by Thomson Reuters estimated earnings of 6.62 yuan per share.

Revenues for the quarter grew 33.1 percent to 18.70 billion yuan from 14.05 billion yuan a year ago. Analysts had a consensus revenue estimate of 18.55 billion yuan for the quarter.

Online marketing revenues grew 27.2 percent to 17.61 billion yuan from last year, with active online marketing customers increasing 6.1 percent and revenue per online marketing customer improving 17.4 percent.

Traffic acquisition cost as a component of cost of revenues represented 14.0 percent of total revenues, up from 13.4 percent last year.

Looking forward to the first quarter, Baidu expects revenue of 15.41 billion yuan to 15.97 billion yuan. Analysts currently expect revenues of 16.32 billion yuan.

BIDU closed Thursday's trading at $158.22, down $4.53 or 2.78%, on the Nasdaq. The stock, however, gained $17.73 or 11.21% in the after-hours trade.