Baidu Q3 beats, sees strong Q4 sales

Reuters News
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Posted: Oct 27, 2011 5:09 PM

(Reuters) - China's largest search engine Baidu Inc reported an 80 percent rise in quarterly profit, shrugging off a spate of negative publicity to beat Wall Street forecasts, boosted by advertising spending at e-commerce companies.

Shares of Baidu, a favorite pick of hedge funds, rose 10 percent in extended trade Thursday.

Baidu said it expects fourth-quarter revenue of $691.4-$711.0 million, above analysts' forecasts of $649.5 million, according to Thomson Reuters I/B/E/S.

For the third quarter, Baidu reported net income of $295 million, or 84 cents per share. On an adjusted basis, the company earned 86 cents a share in the period.

Analysts on average expected the company to post a profit of 83 cents a share.

Total revenue rose 85 percent to $654.7 million, above its own forecast of $611.1 million to $626.6 million.

Shares in Baidu, whose name is taken from an ancient Chinese poem, closed up 6 percent at $138.39 on Nasdaq. They have gained 36 percent so far this year.

(Reporting by Soham Chatterjee in Bangalore; Editing by Anthony Kurian)