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The Zacks Consensus Estimate for revenues is pegged at $4.56 billion, indicating a decline of 7.31% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for earnings is pegged at $1.73 per share, suggesting a 42.2% fall from the prior-year quarter’s reported figure. The estimated figure has moved south by 12.3% over the past 30 days.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
BIDU’s earnings beat estimates in each of the trailing four quarters, the average being 10.17%.
Factors to Consider for Baidu
Baidu is poised to deliver disappointing results in fourth-quarter 2024 as multiple headwinds continue to plague the Chinese tech giant. The company's third-quarter performance already showed concerning trends, with total revenues declining 3% year over year to RMB33.6 billion ($4.78 billion), suggesting persistent challenges in its core businesses.
The online marketing segment, which forms a substantial portion of Baidu's revenues, has been particularly weak. In the third quarter, online marketing revenues dropped 4% year over year, and this downward trajectory is expected to continue in the to-be-reported quarter amid China's sluggish economic recovery and reduced advertising spending.
The company's increased investments in AI and autonomous driving technologies, while strategic for the long term, are expected to have pressure margins without showing immediate returns.
The macroeconomic environment in China remains challenging, with persistent deflationary pressures and property market concerns likely to impact advertising budgets and enterprise spending. Additionally, Baidu's iQIYI segment continues to struggle, having posted a 10% revenue decline in the third quarter, and similar weakness is anticipated in the fourth quarter.
While Baidu's AI Cloud business has shown some growth, it hasn't been sufficient to offset the decline in core businesses. The company's heavy reliance on cost control measures to maintain margins suggests limited organic growth opportunities. With mounting competitive pressures in the AI space and an uncertain regulatory environment in China, Baidu faces significant challenges in maintaining its market position and delivering shareholder value in the near term.
What Our Model Says for BIDU
Our proven model does not 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 is not the case here.
Baidu has an Earnings ESP of -11.55% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this time around.
It is set to report fourth-quarter 2024 results on Feb. 20. The Zacks Consensus Estimate for AKAM’s fourth-quarter earnings per share is pegged at $1.52, down by a penny over the past 60 days. AKAM shares have plunged 20.3% over the past year.
Autohome (ATHM - Free Report) has an Earnings ESP of +11.32% and carries a Zacks Rank #2 at present.
It is set to report fourth-quarter 2024 results on Feb. 20. The Zacks Consensus Estimate for Autohome’s fourth-quarter earnings is pegged at 53 cents per share, unchanged over the past 60 days, indicating a decline of 8.6% from the year-ago quarter’s reported figure. ATHM shares have risen 5.7% over the past year.
Sabre (SABR - Free Report) has an Earnings ESP of +25.93% and carries a Zacks Rank #3 at present.
It is set to report fourth-quarter 2024 results on Feb. 20. The Zacks Consensus Estimate for Sabre’s fourth-quarter bottom line is pegged at a loss of 7 cents per share, unchanged over the past 60 days. The consensus mark indicates a narrower loss than 12 cents reported in the year-ago quarter. SABR shares have tanked 21.2% over the past year.
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Baidu Gears Up to Report Q4 Earnings: Here's What to Expect
Baidu, Inc. (BIDU - Free Report) is scheduled to report fourth-quarter 2024 results on Feb. 18.
The Zacks Consensus Estimate for revenues is pegged at $4.56 billion, indicating a decline of 7.31% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for earnings is pegged at $1.73 per share, suggesting a 42.2% fall from the prior-year quarter’s reported figure. The estimated figure has moved south by 12.3% over the past 30 days.
Baidu, Inc. Stock Price and EPS Surprise
Baidu, Inc. price-eps-surprise | Baidu, Inc. Quote
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
BIDU’s earnings beat estimates in each of the trailing four quarters, the average being 10.17%.
Factors to Consider for Baidu
Baidu is poised to deliver disappointing results in fourth-quarter 2024 as multiple headwinds continue to plague the Chinese tech giant. The company's third-quarter performance already showed concerning trends, with total revenues declining 3% year over year to RMB33.6 billion ($4.78 billion), suggesting persistent challenges in its core businesses.
The online marketing segment, which forms a substantial portion of Baidu's revenues, has been particularly weak. In the third quarter, online marketing revenues dropped 4% year over year, and this downward trajectory is expected to continue in the to-be-reported quarter amid China's sluggish economic recovery and reduced advertising spending.
The company's increased investments in AI and autonomous driving technologies, while strategic for the long term, are expected to have pressure margins without showing immediate returns.
The macroeconomic environment in China remains challenging, with persistent deflationary pressures and property market concerns likely to impact advertising budgets and enterprise spending. Additionally, Baidu's iQIYI segment continues to struggle, having posted a 10% revenue decline in the third quarter, and similar weakness is anticipated in the fourth quarter.
While Baidu's AI Cloud business has shown some growth, it hasn't been sufficient to offset the decline in core businesses. The company's heavy reliance on cost control measures to maintain margins suggests limited organic growth opportunities. With mounting competitive pressures in the AI space and an uncertain regulatory environment in China, Baidu faces significant challenges in maintaining its market position and delivering shareholder value in the near term.
What Our Model Says for BIDU
Our proven model does not 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 is not the case here.
Baidu has an Earnings ESP of -11.55% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this time around.
Akamai Technologies (AKAM - Free Report) has an Earnings ESP of +0.09% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
It is set to report fourth-quarter 2024 results on Feb. 20. The Zacks Consensus Estimate for AKAM’s fourth-quarter earnings per share is pegged at $1.52, down by a penny over the past 60 days. AKAM shares have plunged 20.3% over the past year.
Autohome (ATHM - Free Report) has an Earnings ESP of +11.32% and carries a Zacks Rank #2 at present.
It is set to report fourth-quarter 2024 results on Feb. 20. The Zacks Consensus Estimate for Autohome’s fourth-quarter earnings is pegged at 53 cents per share, unchanged over the past 60 days, indicating a decline of 8.6% from the year-ago quarter’s reported figure. ATHM shares have risen 5.7% over the past year.
Sabre (SABR - Free Report) has an Earnings ESP of +25.93% and carries a Zacks Rank #3 at present.
It is set to report fourth-quarter 2024 results on Feb. 20. The Zacks Consensus Estimate for Sabre’s fourth-quarter bottom line is pegged at a loss of 7 cents per share, unchanged over the past 60 days. The consensus mark indicates a narrower loss than 12 cents reported in the year-ago quarter. SABR shares have tanked 21.2% over the past year.