BEIJING (dpa-AFX) - Chinese internet-search giant Baidu Inc. (BIDU), Monday reported an increase in profit for the second quarter, as revenues jumped a near 40 percent, with both earnings and revenues trumping Street estimates.
However, Baidu shares plunged over 8 percent in after-hours trade on the Nasdaq, after its outlook for the third quarter was short of current Street expectations.
For the third quarter, Beijing-based Baidu expects revenue of 18.170 billion yuan to 18.580 billion yuan. However, analysts currently expect revenues of 18.79 billion yuan for the quarter.
Commenting on the results, Financial Chief Jennifer Li said, 'We delivered solid financial results in the second quarter of 2015, with our core search business exhibiting strong growth and attractive profitability.'
Baidu's second-quarter profit rose to 3.66 billion yuan or 10.19 yuan per ADS from 3.55 billion yuan or 10.09 yuan per ADS for the year-ago quarter.
Adjusted earnings for the quarter were 4.02 billion yuan or 11.19 yuan per share. On average, 11 analysts polled by Thomson Reuters expected earnings of 10.58 yuan per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the second quarter grew 38.3 percent to 16.58 billion yuan from 11.99 billion yuan a year ago. Analysts had a consensus revenue estimate of 16.57 billion yuan for the quarter.
Online marketing revenues grew 38.3 percent to 16.58 billion yuan from last year, with active online marketing customers increasing 20.9 percent and revenue per online marketing customer improving 13.2 percent.
Traffic acquisition cost as a component of cost of revenues represented 12.7 percent of total revenues, flat from last year.
BIDU closed Monday's trading at $197.68, down $8.57 or 4.16%. The stock further dropped $16.03 or 8.11% in after-hours trade.
Copyright RTT News/dpa-AFX