NEW YORK (TheStreet) -- Shares of Baidu (BIDU) - Get Report are slumping 4.50% to $158.18 this morning as the Chinese Internet search provider posted mixed second quarter results after yesterday's closing bell.
Baidu reported earnings of $1.22 per share, surpassing analysts projections of $1.15 per share. Revenue rose 10.2% year-over-year to $2.75 billion, but missed analysts expected $2.99 billion.
Last year, the company posted earnings of $1.19 per share on revenue of $2.77 billion.
Profit fell 17.4% year-over-year to $431.3 million, its largest decline since Baidu went public 11 years ago, the Wall Street Journal reports. The decline stems from government investigations into the company's search and advertising practices led to more stringent regulations that hurt Baidu's ad business, according to the Wall Street Journal.
"The challenges Baidu faces in the second quarter served as a healthy reminder to stay focused on the key drivers of growth, sustainability and leadership...," said Baidu CEO Robin Li in a statement.
Mobile search monthly active users totaled 667 million in June, a 6% increase year-over-year.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate BAIDU INC as a Buy with a ratings score of B-. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: BIDU