Baidu posts mixed quarterly earnings

Today Baidu reported its third-quarter financial performance, including revenue of $2.203 billion and GAAP earnings per share of $1.79. The market had expected the Chinese company to earn $1.69 per share on revenue of $2.22 billion. Excluding the costs of share-based compensation, Baidu earned $1.90 per share (non-GAAP). The company, which fell nearly 2 percent in regular trading, is off another 1.7 percent in after-hours trading.

Profits and revenues from China’s dominant internet search giant Baidu have missed analysts’ forecasts. In the three months to the end of September, net income rose 27% to 3.88bn yuan (£396m) and revenues jumped 52% to 13.5bn yuan. But that was still lower than what many experts predicted for a company often referred to as “China’s Google”. Baidu has been investing heavily in marketing and content in race to keep up with rivals on mobile devices. On Wall Street, shares in Nasdaq-listed Baidu fell 2% in extended trading. Baidu accounts for more than 70% of China engine queries in China. But the company has been facing competition from fast-growing rivals Qihoo 360 and Sogou.