Chinese internet search provider Baidu BIDU is set to report first-quarter earnings results next week on Tuesday after the close. BIDU, a Zacks Rank #4 (Sell), has established a history of exceeding earnings estimates. But with Chinese stocks showing weakness as of late, is BIDU a buy?
Baidu is expected to post a profit of $1.93/share, which would reflect growth of 9.04% versus the same quarter last year. Analyst EPS estimates have dropped -25.8% over the past 60 days. Revenues are projected to have fallen -2.05% during the first quarter to $4.39 billion.
Baidu has exceeded the earnings mark in each of the past four quarters, with an average beat of 45.5% over that timeframe.
Chinese stocks have shown weakness this year, but may offer upside potential as the Chinese economy reopens. Another earnings beat may help lift shares in the short-term.
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