Collins Stewart on Baidu: Expect In-Line Quarter

Collins Stewart has published a research report on Baidu (NASDAQ: BIDU) ahead of the company's earnings report and says to expect in-line results.

In the report, Collins Stewart writes, "We expect Baidu to report a 4Q that is in-line or a slight miss, compared to consensus revenue / PF EPS estimate of $703M (up 89% Y/Y, 81% organic) /$0.89, coming in near the low end of guidance of $691M-$711M (80%-85% Y/Y organic growth). We also expect it to give 1Q guidance that implies -2% to 0% Q/Q growth, roughly in-line with consensus of $686M - esp. given seasonality, current trends and low visibility into 2012 budgets. Baidu has had a string of beat-and-raise quarters, with reported revenues outperforming consensus by 3% and the mid-point of guidance by 4% on average in the past 8 quarters."

Collins Stewart maintains its Buy rating and $215 price target on Baidu, which closed yesterday at $125.03.