China's Baidu Q4 revenue tops forecast, shares jump after hours

SAN FRANCISCO Thu Feb 27, 2014 4:25am IST

People talk in front of a Baidu's company logo at Baidu's headquarters in Beijing January 16, 2014. REUTERS/Jason Lee/Files

People talk in front of a Baidu's company logo at Baidu's headquarters in Beijing January 16, 2014.

Credit: Reuters/Jason Lee/Files

Related Topics



SAN FRANCISCO (Reuters) - Chinese Internet company Baidu Inc (BIDU.O) finished 2013 with its fastest revenue growth in more than a year and forecast revenue for the first quarter that beat Wall Street targets thanks to strength in its mobile business.

Shares of Baidu, the largest Internet search engine in China, jumped more than 6 percent in after-hours trade on Wednesday to $184.10.

Baidu projected that revenue in the first quarter will range between 9.240 billion yuan and 9.520 billion yuan. Analysts polled by Thomson Reuters I/B/E/S were looking for first-quarter revenue of 8.697 billion yuan.

Baidu Chief Executive Robin Li said in a statement that mobile accounted for 20 percent of the company's total revenue in the last three months of the year.

Baidu has been racing to catch up to rivals Tencent Holdings Ltd and Alibaba Group Holding Ltd IPO-ALIB.N, as the two firms stake their ground on people's screens in the world's biggest smartphone market.

Baidu's aggressive strategy to gain ground on the competition has included buying other businesses like the $1.9 billion purchase of 91 Wireless app store in August and group-buying site Nuomi, similar to GroupOn Inc (GRPN.O), which Baidu fully acquired last month after securing a 59 percent stake last August.

Baidu said it earned 7.90 yuan per share in the fourth quarter, versus the average analyst expectation of 8.19 yuan.

Revenue in the fourth quarter increased 50.3 pecent to 9.523 billion yuan, exceeding the 9.319 yuan expected by analysts.

Baidu said conversions from yuan to U.S. dollars were based on a rate of 6.0537 yuan to the dollar, the effective noon rate as of December 31, 2013.

(Reporting by Alexei Oreskovic in San Francisco and Paul Carsten in Beijing; Editing by David Gregorio and Jonathan Oatis)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared



Anti-trust Probe

Anti-trust Probe

Microsoft targeted in apparent Chinese anti-trust probe  Full Article 

Banking on PlayStation

Banking on PlayStation

With PlayStation network, Sony goes back to the future in search of revival  Full Article 

Wearable Gadgets

Wearable Gadgets

Swatch plans fitness-based touch wristwatch, CEO tells paper.  Full Article 

Xbox Marketing

Xbox Marketing to sell Microsoft's Xbox One games console in China.  Full Article 

Testing Times

Testing Times

Analysis - Amazon's far-reaching ambitions, lack of profits, unnerve investors.  Full Article 

IPO Probe Over

IPO Probe Over

Facebook says SEC's IPO probe ends, extending WhatsApp closing date  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage