China's Baidu Lifts Revenue Guidance

Baidu, the Chinese technology company, lifts fourth-quarter revenue guidance.
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Baidu (BIDU) - Get Report shares were surging 7.4% to $132.66 Monday after the Chinese technology company raised its fourth-quarter revenue guidance, while postponing the release of its quarterly report "due to the evolving situation brought upon by the outbreak of the novel coronavirus in China."

The Beijing-based search-engine giant increased its fourth-quarter revenue guidance to RMB28.3 billion to RMB28.9 billion ($4.06 billion to $4.15 billion), up 4% to 6% from a year ago. Earlier revenue guidance called for a range RMB27.1 billion to RMB 28.7 billion.

The forecast assumes that Baidu's core revenue will grow between 4% to 6% year over year, the company said, compared with the previous guidance between 0% to 6% year over year.

Baidu also said it expects net income to range from RMB8.9 billion to RMB9.4 billion, which assumes that non-GAAP net income attributable to Baidu core will grow between 50% to 55% year over year.

In addition, the company said it will delay releasing its fourth-quarter and fiscal 2019 earnings report until Feb. 27.

"The revised date would give the company more time to observe the business condition for the first quarter of 2020," Baidu said.

In an effort to "help control the epidemic," Baidu also extended employees' Chinese New Year holiday, originally scheduled from Jan. 24 to Jan. 30, and asked employees to work from home.

The death toll in China from the coronavirus has risen to 362, while the first death outside of China was reported in the Philippines. During the SARS outbreak in 2002 and 2003, 349 people died in mainland China.

At least 17,000 other people - including 171 people from 24 countries outside China - have been infected.