Baidu (BIDU) to Report Q4 Earnings: What's in the Cards?
Baidu, Inc. BIDU is scheduled to report its fourth-quarter 2022 results on Feb 22.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $4.64 billion, indicating a decline of 10.6% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for earnings is pegged at $2.14 per share, suggesting 17.6% growth from the prior-year quarter’s reported figure.
BIDU’s earnings beat estimates in all the trailing four quarters, the average being 50.17%.
Baidu, Inc. Price and EPS Surprise
Baidu, Inc. price-eps-surprise | Baidu, Inc. Quote
Key factors to Note
BIDU’s growing traction across Apollo auto solutions is likely to have benefited the company’s performance in the fourth quarter.
Further, solid momentum across its autonomous ride-hailing service called Apollo Go Robotaxi is likely to have favored BIDU’s performance in the quarter under review.
The continuous efforts to strengthen Baidu’s AI business are likely to have been a key catalyst.
BIDU’s robust Baidu Cloud is anticipated to have benefited the business in the quarter under review.
The growing adoption of Baidu ACE smart transportation solutions is likely to have contributed well to the AI business in the to-be-reported quarter.
Additionally, growing efforts to bolster the mobile search engine and AI tools are expected to have aided its fourth-quarter performance.
Moreover, solid momentum in Baidu's mobile ecosystem is expected to have aided growth in the user base of the Baidu App in the fourth quarter. Robust hosted solutions on the Baidu App are expected to have driven the Baidu Core segment in the to-be-reported quarter.
The growing adoption of the Baidu Map mobile app is likely to have contributed well to the Mobile business in the to-be-reported quarter.
However, uncertainties related to the coronavirus pandemic are likely to have acted as major concerns in the quarter under review.
What Our Model Says
Our proven model doesn’t conclusively predict an earnings beat for Baidu this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, but that’s not the case here, as elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Baidu has an Earnings ESP of -8.88% and a Zacks Rank #1 at present.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Grid Dynamics GDYN has an Earnings ESP of +4.76% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Grid Dynamics is scheduled to release its fourth-quarter 2022 results on Feb 23. The Zacks Consensus Estimate for GDYN’s earnings is pegged at 11 cents per share, suggesting an increase of 10% from the prior-year quarter’s reported figure.
Adobe ADBE has an Earnings ESP of +0.42% and a Zacks Rank #3 at present.
Adobe is set to report its first-quarter fiscal 2023 results on March 15. The Zacks Consensus Estimate for ADBE’s earnings is pegged at $3.66 per share, suggesting an increase of 8.61% from the prior-year period’s reported figure.
Broadcom AVGO has an Earnings ESP of +0.67% and a Zacks Rank #3 at present.
Broadcom is scheduled to release its first-quarter fiscal 2023 results on March 2. The Zacks Consensus Estimate for AVGO’s earnings is pegged at $10.16 per share, suggesting an increase of 21.1% from the prior-year period’s reported figure.
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Baidu, Inc. (BIDU) : Free Stock Analysis Report
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