Baidu, Inc. BIDU is scheduled to report fourth-quarter 2024 outcomes on Feb. 18.
The Zacks Consensus Estimate for revenues is pegged at $4.56 billion, indicating a decline of seven.31% from the year-ago quarter’s reported determine.
The Zacks Consensus Estimate for earnings is pegged at $1.73 per share, suggesting a 42.2% fall from the prior-year quarter’s reported determine. The estimated determine has moved south by 12.3% over the previous 30 days.
Baidu, Inc. Inventory Value and EPS Shock
Baidu, Inc. price-eps-surprise | Baidu, Inc. Quote
Discover the most recent EPS estimates and surprises on Zacks Earnings Calendar.
BIDU’s earnings beat estimates in every of the trailing 4 quarters, the typical being 10.17%.
Components to Contemplate for Baidu
Baidu is poised to ship disappointing leads to fourth-quarter 2024 as a number of headwinds proceed to plague the Chinese language tech large. The corporate’s third-quarter efficiency already confirmed regarding developments, with complete revenues declining 3% yr over yr to RMB33.6 billion ($4.78 billion), suggesting persistent challenges in its core companies.
The web advertising and marketing phase, which kinds a considerable portion of Baidu’s revenues, has been significantly weak. Within the third quarter, on-line advertising and marketing revenues dropped 4% yr over yr, and this downward trajectory is anticipated to proceed within the to-be-reported quarter amid China’s sluggish financial restoration and decreased promoting spending.
The corporate’s elevated investments in AI and autonomous driving applied sciences, whereas strategic for the long run, are anticipated to have strain margins with out exhibiting fast returns.
The macroeconomic setting in China stays difficult, with persistent deflationary pressures and property market issues prone to influence promoting budgets and enterprise spending. Moreover, Baidu’s iQIYI phase continues to battle, having posted a ten% income decline within the third quarter, and comparable weak spot is anticipated within the fourth quarter.
Whereas Baidu’s AI Cloud enterprise has proven some progress, it hasn’t been enough to offset the decline in core companies. The corporate’s heavy reliance on value management measures to take care of margins suggests restricted natural progress alternatives. With mounting aggressive pressures within the AI house and an unsure regulatory setting in China, Baidu faces important challenges in sustaining its market place and delivering shareholder worth within the close to time period.
What Our Mannequin Says for BIDU
Our confirmed mannequin doesn’t conclusively predict an earnings beat for Baidu this time round. The mixture of a constructive Earnings ESP and a Zacks Rank #1 (Robust Purchase), 2 (Purchase) or 3 (Maintain) will increase the percentages of an earnings beat. However that’s not the case right here.
Baidu has an Earnings ESP of -11.55% and a Zacks Rank #4 (Promote). You possibly can uncover the very best shares to purchase or promote earlier than they’re reported with our Earnings ESP Filter.
Different Shares to Contemplate
Listed below are some shares price contemplating, as our mannequin reveals that these have the proper mixture of components to beat on earnings this time round.
Akamai Applied sciences AKAM has an Earnings ESP of +0.09% and carries a Zacks Rank #2 at current. You possibly can see the complete list of today’s Zacks #1 Rank stocks here.
It’s set to report fourth-quarter 2024 outcomes on Feb. 20. The Zacks Consensus Estimate for AKAM’s fourth-quarter earnings per share is pegged at $1.52, down by a penny over the previous 60 days. AKAM shares have plunged 20.3% over the previous yr.
Autohome ATHM has an Earnings ESP of +11.32% and carries a Zacks Rank #2 at current.
It’s set to report fourth-quarter 2024 outcomes on Feb. 20. The Zacks Consensus Estimate for Autohome’s fourth-quarter earnings is pegged at 53 cents per share, unchanged over the previous 60 days, indicating a decline of 8.6% from the year-ago quarter’s reported determine. ATHM shares have risen 5.7% over the previous yr.
Sabre SABR has an Earnings ESP of +25.93% and carries a Zacks Rank #3 at current.
It’s set to report fourth-quarter 2024 outcomes on Feb. 20. The Zacks Consensus Estimate for Sabre’s fourth-quarter backside line is pegged at a lack of 7 cents per share, unchanged over the previous 60 days. The consensus mark signifies a narrower loss than 12 cents reported within the year-ago quarter. SABR shares have tanked 21.2% over the previous yr.
Zacks’ Analysis Chief Names “Inventory Most More likely to Double”
Our workforce of consultants has simply launched the 5 shares with the best likelihood of gaining +100% or extra within the coming months. Of these 5, Director of Analysis Sheraz Mian highlights the one inventory set to climb highest.
This prime decide is among the many most modern monetary companies. With a fast-growing buyer base (already 50+ million) and a various set of innovative options, this inventory is poised for giant positive factors. After all, all our elite picks aren’t winners however this one may far surpass earlier Zacks’ Shares Set to Double like Nano-X Imaging which shot up +129.6% in little greater than 9 months.
Free: See Our Top Stock And 4 Runners Up
Baidu, Inc. (BIDU) : Free Stock Analysis Report
Akamai Technologies, Inc. (AKAM) : Free Stock Analysis Report
Sabre Corporation (SABR) : Free Stock Analysis Report
Autohome Inc. (ATHM) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
