Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
This was one of the 2-3 roughest day of the year for the high growth stocks, and thus far it’s not better in after hours as everyone waits on Apple. Â Baidu (BIDU) just reported EPS of $0.87 which a bit above estimates of $0.85, but revenue was a tiny bit short at $677M vs $679M expected. Â Probably the larger issue is guidance of Q2 at $847-867M vs expectations of $860M. Â The growth continues to be very good (+75% revenue growth), but when I use the term “not impressive” it simply means in relation to estimates. Â Also Q2 guidance “only” shows 60%ish type of growth – numbers most companies would of course die for. Â It’s all relative.
Traffic acquisition costs actually fell as a % of revenue, which is a positive:
- Traffic acquisition cost (TAC)Â as a component of cost of revenues was RMB331.3 million ($52.6 million), representing 7.8% of total revenues, as compared to 8.2% in the corresponding period in 2011 and 7.9% in the fourth quarter of 2011.
The stock is taking it on the chin in after hours, down an additional 10% from where it closed. Â Full report here.
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