Baidu Inc (NASDAQ: BIDU) stock surged over 13.5% on November 7th, 2019 and continued its bullish momentum generating over 0.94% (as of 09:35:20; Investing.com). BIDU in the third quarter of FY 19 has reported the adjusted earnings per ADS of $1.76, beating the analysts’ estimates for the adjusted earnings per ADS of $1.16, according to Analysts polled by FactSet. The company had reported the adjusted revenue growth of 3 percent to RMB28.1 billion ($3.93 billion) in the third quarter of FY 19, beating the analysts’ estimates for revenue of $3.94 billion. The revenue from the company’s online marketing services business declined by about 9% to 20.43 billion yuan. The revenue from iQIYI, which competes with Alibaba-backed Youku and Tencent Holdings’ Tencent Video, grew by about 7% to 7.4 billion yuan ($1.06 billion), as the service crossed 105.8 million subscribers in September this year.
The company reported net loss attributable to the company was 6.37 billion yuan in the third quarter ended Sept. 30, compared to a net income of 12.40 billion yuan a year earlier. The losses came mainly from the equity investments mainly due to disposal gains from Du Xiaoman and Global DU businesses. Further, the fall in the market value of Trip.com shares and the continued low market price has caused the Company to recognize a non-cash impairment loss of RMB 8.9 billion in the third quarter of 2019. The company has reported better than expected results on the back of strong growth at its video streaming platform iQIYI.
At the end of September 2019, the company generated the cash, cash equivalents, restricted cash and short-term investments of RMB 137.4 billion ($19.22 billion), and cash, cash equivalents, restricted cash and short-term investments excluding iQIYI of RMB 123.5 billion ($17.27 billion). The company generated the Free cash flow of RMB 7.6 billion ($1.06 billion)and free cash flow excluding iQIYI of RMB 7.5 billion ($1.05 billion).
Baidu’s total costs and expenses rose by more than 8.0% to 25.73 billion yuan during the third quarter, while content costs grew 4.5%. The company posted the Non-GAAP operating income of RMB 3.7 billion ($516 million), and non-GAAP operating margin of 13%. The company also posted the Non-GAAP Baidu Core operating income of RMB 6.2 billion ($871 million), and non-GAAP Baidu Core operating margin of 30%
For the fourth quarter, Baidu expects revenue to be in the range of $3.78 billion to $4.02 billion. For the fourth quarter, analysts expect adjusted earnings of $1.22 per ADS and sales of $3.97 billion.