Why Baidu (BIDU) Stock Is Up After Hours

NEW YORK (TheStreet) -- Baidu (BIDU) stock is gaining in extended trading after the company reported an increase in earnings and revenue in its first quarter. 

After the bell, shares added 4.5% to $167.21.

Over the three months to March, the Chinese-language search engine earned $407.8 million, or $1.24 a share, a 24.1% year-over-year increase. 

Revenue jumped 59.1% to $1.53 billion. 

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Analysts surveyed by Thomson Reuters had expected net income of 96 cents a share or $333 million. 

"Our core search business once again drove strong top-line growth," said CFO Jennifer Li in a statement. "We'll continue to invest aggressively in our core business and key strategic focus areas to support Baidu's long-term industry leadership."

Management expects to generate revenue between $1.9 billion to $1.95 billion in its second quarter ending June, representing a 56.3% to 60.2% year-over-year increase. 

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 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, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

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