Baidu Inc. BIDU,
American depositary receipts increased by more than 2% in Wednesday’s extended session after the China-based internet company reported profits adjusted above Wall Street expectations and sales that met forecasts. Baidu said it earned $ 794 million, or $ 2.31 per share, in the fourth quarter, compared with $ 2.61 per share a year ago. Adjusted for single items, Baidu earned $ 3.08 per share. Revenues increased 5% to $ 4.64 billion. Analysts polled by FactSet had expected Baidu to post adjusted earnings of $ 2.79 per share on sales of $ 4.67 billion. “Baidu ended 2020 on a solid note, with our businesses benefiting from the improved macroeconomic environment and the digitalization of the industrial Internet,” said co-founder and chief executive Robin Li in a statement. “Our focus on innovation through technology is paying off, with Baidu Core’s non-marketing revenue growing 52% year on year in the fourth quarter,” he said. Baidu directed sales of between US $ 4 billion and US $ 4.4 billion for the first quarter of 2021, which would represent a growth rate between 15% and 26% year on year.
