NEW YORK (TheStreet) -- Shares of Baidu Inc. (BIDU) - Get Reportare plummeting, sharply lower by 13.14% to $171.70 in pre-market trading Tuesday, after the Chinese-language Internet provider released its latest quarterly earnings results late yesterday.
For the second quarter, Baidu earned 11.19 RMB per share, compared to the 10.58 RMB analysts were expecting. In U.S. dollars, that equates to a profit of about $1.80 per share, versus the $1.70 per share consensus estimate.
The company raked in revenue of 16.58 billion RMB, which equates to about $2.67 billion for the period, roughly in-line with revenue of 16.57 billion RMB Wall Street was expecting.
"With Baidu's cornerstone search business delivering solid growth and enjoying ample runway ahead, and with powerful mobile gateways to leverage, we are ideally positioned to capture the O2O e-commerce opportunity and build the 'Next Baidu'," company chairman and CEO Robin Li said in a statement.
Looking ahead, Baidu expects third quarter revenue to come in between $2.931 billion to $2.997 billion.
Analysts are expecting the company to report $3.03 billion in sales for the current quarter.
Additionally, shares of Baidu fell along with other China-based U.S. traded stocks Monday, following the decline in the Chinese stock markets.
Beijing-based Baidu is a Chinese language Internet search provider serving three types of online participants which include users, customers and its union members.
Separately, TheStreet Ratings team rates BAIDU INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate BAIDU INC (BIDU) a BUY. This is driven by several positive factors, 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, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, increase in stock price during the past year and notable return on equity. 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 Ratings Report