Baidu (BIDU) Will Release Q4 Earnings Report: What Happens?

Baidu, Inc. BIDU is scheduled to release its fourth-quarter 2021 results on March 1.

For the fourth quarter, the company expects revenue of RMB31 billion ($4.81 billion) to RMB34 billion ($5.27 billion), suggesting a growth rate of 2% to 12% year-over-year.

The Zacks Consensus Estimate is for revenue of $5.15 billion, up 11.1% from the year-ago numbers.

Moreover, the Zacks Consensus Estimate is calling for earnings per share of $1.49 per share, suggesting a decline of 51.6% from the prior-year data. The level of consensus has not changed over the last 30 statements.

BIDU has exceeded estimates in all four consecutive quarters, delivering earnings surprises of 27.6% on average.

Baidu, Inc. Price and EPS surprise

Baidu, Inc. price-eps-surprise | Baidu, Inc. Quote

Factors to consider

Baidu’s fourth-quarter revenue is expected to be driven by Baidu’s core strength due to the growing demand for Baidu AI Cloud.

The company wins smart public parking projects thanks to its strength in Baidu Maps. This will likely continue to impact Baidu’s results in the reporting quarter.

Increasing efforts to expand its presence in the autonomous driving space may have been a tailwind. The growing popularity of Apollo Go Robotaxi may have continued to help the company in the fourth quarter.

The growing adoption of Baidu ACE intelligent transportation in China is expected to drive its performance in the quarter under review.

The strength of the company’s mobile ecosystem is expected to significantly contribute to the growth of Baidu’s average daily active user base in the fourth quarter.

Increasing use of the company’s managed side is likely to remain a positive factor in the quarter.

Strong demand for Baidu Health, Xiaodu smart display and DuerOS smart assistant are expected to drive its performance in the reporting quarter.

Moreover, iQIYI’s thriving online entertainment segment is expected to continue to deliver benefits in the fourth quarter.

However, uncertainty surrounding the coronavirus pandemic in China may have remained a cause for concern. The impact of the Omicron variant is also expected to be reflected in upcoming quarterly results.

Moreover, higher promotional expenses and heavy spend on TV channels are likely to impact the company’s performance in the reporting quarter.

What our model says

Our proven model does not clearly predict an increase in Baidu’s profits this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here. With our Earnings ESP filter, you can discover the best stocks to buy or sell before they are reported.

It currently has an Earnings ESP of 0.00% and a Zacks Rank #5 (Strong Sell).

Stocks to consider

Here are some stocks you may want to consider as our model shows they have the right combination of elements to deliver better returns this season.

DICK’S sporting goods DKS currently has an Earnings ESP of +4.86% and a Zacks Rank of 2. You can see complete list of today’s Zacks #1 ranked stocks here.

DICK’s is scheduled to release its fiscal 2022 fourth-quarter results on March 8. The Zacks Consensus Estimate estimates DKS earnings of $3.39 per share, suggesting growth of 39.5% from the prior-year figure.

BJ’s Wholesale Club BJ currently has an Earnings ESP of +0.33% and a Zacks Rank of #3.

BJ’s Wholesale Club is scheduled to release fiscal 2021 fourth-quarter earnings on March 3. The Zacks Consensus Estimate for BJ’s earnings is 75 cents per share, suggesting growth of 7.1% from the prior-year figure.

Casey’s General Stores CASY currently has an Earnings ESP of +5.19% and a Zacks Rank of #3.

Casey’s is scheduled to report fiscal 2022 third-quarter earnings on March 8. The Zacks Consensus Estimate estimates CASY earnings of $1.45 per share, suggesting growth of 39.4% from the prior-year data.

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