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Baidu (BIDU) to Report Q4 Earnings: What's in the Cards?
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Baidu, Inc. (BIDU - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 17.
For the fourth quarter, the company expects revenues between $4.2 billion and $4.6 billion. The Zacks Consensus Estimate for revenues is pegged at $4.46 billion, indicating growth of 7.4% from the year-ago quarter’s reported figure.
Further, the Zacks Consensus Estimate for earnings is pegged at $2.51 per share, suggesting a decline of 34.1% from the prior-year reported figure.
The company beat estimates in all of the trailing four quarters, delivering an earnings surprise of 52.45%, on average.
Baidu’s sustained efforts to bolster mobile search engine and AI tools are anticipated to have contributed to the fourth-quarter performance.
Moreover, the strengthening ofBaidu's mobile ecosystem is expected to have contributed to growth in the average daily active user base of the Baidu App in the fourth quarter. Moreover, hosted solutions on the Baidu App are expected to have driven the Baidu Core segment in the to-be-reported quarter.
Further, deepening focus toward bolstering its AI business is expected to have remained the key catalyst. The company’s robust DuerOS voice assistant and Baidu Cloud are expected to have benefited the performance of this business in the quarter under review.
Notably, Baidu’s increasing momentum across XiaoduPods, which is powered by DuerOS 6.0, is anticipated to have remained a tailwind.
Further, the company’s expanding footprint in the autonomous driving space is expected to get reflected in the to-be-reported quarterly results. The growing traction ofthe Apollo Go Robotaxi service across multiple cities in China is expected to have hugely favored the company in the fourth quarter.
Furthermore, the introduction of intelligent vehicle solutions for automakers and several high-end intelligent driving products is anticipated to have remained a positive.
In addition to these, the company’s well-performing iQIYI segment, which offers online entertainment service, is expected to have contributed well to the to-be-reported quarter performance.
Also, robust quantum computing offerings of the company, including Quantum Leaf and Quanlse, are expected to have aided its presence in the cloud computing space in the quarter under review.
However, the impacts of higher promotional expenses, heavy spending on new growth areas and increasing competition in the search engine market are expected to get reflected in the fourth-quarter results of Baidu.
What Our Model Says
Our proven model doesn’t conclusively predict an earnings beat for Baidu this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Baidu has an Earnings ESP of 0.00% and it sports a Zacks Rank #1, currently.
Stocks to Consider
Here are some companies, which have the right combination of elements to post an earnings beat this quarter:
CrowdStrike Holdings Inc. (CRWD - Free Report) presently has an Earnings ESP of +57.75% and a Zacks Rank of 2.
Sapiens International Corporation (SPNS - Free Report) currently has an Earnings ESP of +1.96% and a Zacks Rank of 2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Baidu (BIDU) to Report Q4 Earnings: What's in the Cards?
Baidu, Inc. (BIDU - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 17.
For the fourth quarter, the company expects revenues between $4.2 billion and $4.6 billion. The Zacks Consensus Estimate for revenues is pegged at $4.46 billion, indicating growth of 7.4% from the year-ago quarter’s reported figure.
Further, the Zacks Consensus Estimate for earnings is pegged at $2.51 per share, suggesting a decline of 34.1% from the prior-year reported figure.
The company beat estimates in all of the trailing four quarters, delivering an earnings surprise of 52.45%, on average.
Baidu, Inc. Price and EPS Surprise
Baidu, Inc. price-eps-surprise | Baidu, Inc. Quote
Factor to Consider
Baidu’s sustained efforts to bolster mobile search engine and AI tools are anticipated to have contributed to the fourth-quarter performance.
Moreover, the strengthening ofBaidu's mobile ecosystem is expected to have contributed to growth in the average daily active user base of the Baidu App in the fourth quarter. Moreover, hosted solutions on the Baidu App are expected to have driven the Baidu Core segment in the to-be-reported quarter.
Further, deepening focus toward bolstering its AI business is expected to have remained the key catalyst. The company’s robust DuerOS voice assistant and Baidu Cloud are expected to have benefited the performance of this business in the quarter under review.
Notably, Baidu’s increasing momentum across XiaoduPods, which is powered by DuerOS 6.0, is anticipated to have remained a tailwind.
Further, the company’s expanding footprint in the autonomous driving space is expected to get reflected in the to-be-reported quarterly results. The growing traction ofthe Apollo Go Robotaxi service across multiple cities in China is expected to have hugely favored the company in the fourth quarter.
Furthermore, the introduction of intelligent vehicle solutions for automakers and several high-end intelligent driving products is anticipated to have remained a positive.
In addition to these, the company’s well-performing iQIYI segment, which offers online entertainment service, is expected to have contributed well to the to-be-reported quarter performance.
Also, robust quantum computing offerings of the company, including Quantum Leaf and Quanlse, are expected to have aided its presence in the cloud computing space in the quarter under review.
However, the impacts of higher promotional expenses, heavy spending on new growth areas and increasing competition in the search engine market are expected to get reflected in the fourth-quarter results of Baidu.
What Our Model Says
Our proven model doesn’t conclusively predict an earnings beat for Baidu this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Baidu has an Earnings ESP of 0.00% and it sports a Zacks Rank #1, currently.
Stocks to Consider
Here are some companies, which have the right combination of elements to post an earnings beat this quarter:
Workday, Inc. (WDAY - Free Report) currently has an Earnings ESP of +1.16% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
CrowdStrike Holdings Inc. (CRWD - Free Report) presently has an Earnings ESP of +57.75% and a Zacks Rank of 2.
Sapiens International Corporation (SPNS - Free Report) currently has an Earnings ESP of +1.96% and a Zacks Rank of 2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>