Chinese Internet search leader Baidu, one of the stocks in our Domain Parking Stock Index, reported earnings early this morning, and posted a 91 percent rise in quarterly net profit
The company said it expects continued strong revenue growth.
Net income rose to $51.2 million in the third quarter from $24.2 million from a year earlier. Net profit per share was $1.47, beating the $1.27 per share forecast by Reuters Estimates.
For the fourth quarter, the company said it expects total revenue ranging from $151 million to $155 million, which would represent growth of 80-85 percent growth over a year ago.
Baidu ranks No. 3 worldwide behind Yahoo, according to data from market research firm comScore, but its customers are largely limited to China.
Baidu’s revenue increased 85 percent to 919.1 million yuan from a year earlier, largely in line with analysts’ forecasts.
The number of active online marketing customers running Baidu-search advertising grew to 194,000, an increase of 7.2 percent from 181,000 customers in the second quarter.
Baidu dominates the Chinese Web search and advertising market, with an estimated two-thirds of the audience in the world’s most populous market.
Despite the glowing earnings report shares of Baidu.com fell over 15% in morning trading down, $39 at $210 a share.
The only negative I could find in the reports was that many investors thought that Baidu would start a stock buy back program to take advantage of the $350 Million in cash its sitting on, but baidu denied that they would be starting such a program.