U.S.-traded shares of Baidu Inc. BIDU, +4.44% surged in the extended session Friday after the Chinese Internet search company raised its outlook for the quarter. Baidu ADRs rallied 5% after hours, following a 1.7% decline to close the regular session at $123.56. The company said it expects adjusted fourth-quarter net income of $1.28 billion to $1.36 billion on revenue of $4.06 billion to $4.15 billion. Analysts surveyed by FactSet had forecast adjusted net income of $623.4 million on revenue of $4.02 billion. Baidu also said it was pushing its reporting date to Feb. 27 and extending its employees' Chinese New Year holiday and asking them to work from home because of "the evolving situation brought upon by the outbreak of the novel coronavirus."
Note
Financial GuidanceFor the fourth quarter 2019, Baidu expects revenue to be in the range of RMB 28.3 billion ($4.06 billion) to RMB 28.9 billion ($4.15 billion)[1], increasing 4% to 6% year over year, compared to its previous guidance in the range of RMB 27.1 billion to RMB 28.7 billion, or -1% to 6% increase year over year. This forecast assumes that Baidu Core revenue will grow between 4% to 6% year over year, compared to the previous guidance between 0% to 6% year over year.
In addition, Baidu expects net income attributable to Baidu to be in the range of RMB 6.2 billion ($0.89 billion) to RMB 6.7 billion ($0.97 billion), which assumes that net income attributable to Baidu Core will grow between 83% to 90% year over year. Baidu also expects non-GAAP net income attributable to Baidu to be in the range of RMB 8.9 billion ($1.28 billion) to RMB 9.4 billion ($1.36 billion), which assumes that non-GAAP net income attributable to Baidu Core will grow between 50% to 55% year over year. Reconciling items from non-GAAP financial measure to GAAP measure are discussed below in the "Non-GAAP Financial Measure" section.
The above forecast reflects Baidu's current and preliminary view, which is subject to substantial uncertainty.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.