Competent Enough to Stay in the Market

Baidu, Inc. (NASDAQ:BIDU) is projected to declare fiscal fourth quarter financial results right before the stock market’s official open on February 23, 2017. The stock added about 3.7 percent in price since last results when it was at $175.1 a share. Based on the most relevant past-periods data, there is an 67.86 percent probability for this firm’s share price to go up following next quarterly results. Earnings reaction history tells us that the equity price moved up 19 times out of last 28 reported quarters. It has beaten earnings-per-share estimates 66% of the time in its last 12 earnings reports. It fell short of earnings estimates on 4 occasions, and it has met expectations 0 time.

Here’s how traders responded to BIDU earnings announcements over the past few quarters.

Baidu, Inc. (BIDU) Earnings Surprises & Reaction

Given its history, the average earnings announcement surprise was 313.64 percent over the past four quarters. Back on October 27, 2016, it posted earnings per-share earnings at $1.28 which beat the consensus $0.87 projection (positive surprise of47.13%. For the quarter, revenue came in at 18.25B versus consensus estimate of 18.31B. The stock gained 2.56 percent the session following the earnings reports were released, and on 7th day price change was -3.73 percent.

On July 28, 2016, it reported earnings at $1.05 a share compared with the consensus estimate of $0.94 per share (positive surprise of 11.7%). Revenue of 18.26B for that quarter was above the $18.17B analysts had expected. The stock retreated -3.64% the day following the earnings announcement, and on 7th day price change was -1.85%.

On April 28, 2016, it recorded $0.91 a share in earnings which topped the consensus estimate of $0.78 (positive surprise of 16.67%). Revenue for the quarter was $15.82B while analysts called for revenues to be $15.85B. The stock gained 4.45% the day following the earnings data was made public, and on 7th day price change was -5.81%.

On February 25, 2016, it announced earnings per share at $11 versus the consensus estimate of $0.86 per share (positive surprise of 1179.07%). That came on revenues of $18.7B for that period. Analysts had expected $18.51B in revenue.

Baidu, Inc. Earnings Estimates

As Q4 earnings announcement date approaches, Wall Street is expecting earnings per share of $5.31. The analysts’ present consensus range is $2.78-$6.87 for EPS. The market consensus range for revenue is between $16.29B and $17.84B, with an average of $17.02B.

Baidu, Inc. (NASDAQ:BIDU) last ended at $186.01, sending the company’s market cap near $64.53B. The consensus 12-month price target from analysts covering the stock is $189.39. The share price has declined -7.46% from its top level in 52 weeks and dropped 13.14% this year. It recently traded in a range of $184.97-$187.98 at a volume of 2696866 shares. The recent trading ended with the price nearly 1.77 higher for the last 5 trading days, rebounding 20.17% from its 52-week low.