Baidu Inc. Stock Buy Recommendation Reiterated (BIDU)
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- BIDU's very impressive revenue growth exceeded the industry average of 48.5%. Since the same quarter one year prior, revenues leaped by 61.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Although BIDU's debt-to-equity ratio of 0.12 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 4.47, which clearly demonstrates the ability to cover short-term cash needs.
- BAIDU INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BAIDU INC increased its bottom line by earning $3.02 versus $1.51 in the prior year. This year, the market expects an improvement in earnings ($4.69 versus $3.02).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 71.1% when compared to the same quarter one year prior, rising from $254.76 million to $435.99 million.
- The gross profit margin for BAIDU INC is currently very high, coming in at 77.00%. Regardless of BIDU's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BIDU's net profit margin of 50.80% significantly outperformed against the industry.
--Written by a member of TheStreet Ratings Staff. FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free Download Now
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