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Baidu (BIDU) Gears for Q2 Earnings: What's in the Offing?

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Baidu, Inc. (BIDU - Free Report) is scheduled to report second-quarter 2022 results on Aug 30.

For the second quarter, the Zacks Consensus Estimate for revenues is pegged at $4.43 billion, indicating a decline of 8.8% from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for earnings is pegged at $1.63 per share, suggesting a decline of 31.8% from the prior-year reported figure.

The company beat estimates in all of the trailing four quarters, delivering an earnings surprise of 52.86%, on average.

Baidu, Inc. Price and EPS Surprise

 

Baidu, Inc. Price and EPS Surprise

Baidu, Inc. price-eps-surprise | Baidu, Inc. Quote

Factor to Consider

Solid momentum across Baidu’s AI business is expected to have continued driving its top-line growth in the second quarter. Strength across Baidu Cloud is likely to have been the key catalyst for the business.

The growing PaddlePaddle developer community and the rising adoption of Baidu ACE smart transportation are expected to have contributed well to the performance of the AI business in the to-be-reported quarter.

Apart from this, the impacts of Baidu’s expanding footprint in the autonomous driving space are expected to get reflected in the upcoming results.

The strong momentum of Apollo Go Robotaxi service across China on the back of its increasing availability in several cities and a growing number of rides is likely to have benefitted the company in the quarter under review.

Apart from this, sustained efforts to bolster the mobile search engine and AI tools are anticipated to have aided the second-quarter performance.

The strengthening of Baidu's mobile ecosystem is expected to have contributed to growth in the average daily active user base of the Baidu App in the second quarter. Hosted solutions on the Baidu App are expected to have driven the Baidu Core segment in the to-be-reported quarter.

In addition to these, the company’s well-performing iQIYI segment, which offers online entertainment services, is expected to have contributed well to the to-be-reported quarter’s performance.

However, the impacts of higher promotional expenses and heavy spending on new growth areas are expected to have affected the company’s performance in the quarter under discussion.

Uncertainties related to the coronavirus pandemic in China are anticipated to have been concerning.

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 a Zacks Rank #3 (Hold).

Stocks to Consider

Here are some companies, which have the right combination of elements to post an earnings beat this quarter.

BrownForman (BF.B - Free Report) has an Earnings ESP of +3.16% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

BrownForman is scheduled to release first-quarter fiscal 2023 results on Aug 31. The Zacks Consensus Estimate for BF.B’s earnings is pegged at 45 cents per share, suggesting an increase of 12.5% from the prior fiscal year’s quarterly reported figure.

Campbell Soup (CPB - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank #2 at present.

Campbell Soup is set to report fourth-quarter fiscal 2022 results on Sep 1. The Zacks Consensus Estimate for CPB’s earnings is pegged at 56 cents per share, which suggests an increase of 1.8% from the prior year’s quarterly reported figure.

Calavo Growers (CVGW - Free Report) has an Earnings ESP of +2.78% and is Zacks #3 Ranked at present.

Calavo Growers is scheduled to release third-quarter fiscal 2022 results on Sep 1. The Zacks Consensus Estimate for CVGW’s earnings is pegged at 36 cents per share, whereas it reported a loss of 17 cents per share in the year-ago quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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