Baidu.com fell 4.2% to $320.20 in late trading Thursday, following the company's third-quarter earnings release in which its Q4 revenue outlook, in-line with analyst estimates, disappointed investors. Still, Baidu's Q3 net income more than doubled to 181.7 million yuan, or $24.2M ($0.70/share), with adjusted EPS of $0.72 beating estimates of $0.70. Q3 revenues also more than doubled to 496.5M yuan, or $66.3M, topping analyst expectations of $65M. Baidu said it expects Q4 revenues between 560M yuan to 575M yuan, or $74.7M to $76.7M. Baidu recorded a 39% increase in online customers (advertisers) to 143,000. R&D expenses climbed 53%, while sales and marketing expenses rose 57%. During Baidu's conference call CEO Robin Li said the company plans to introduce an online auction-like service in 2008 (full transcript). Alibaba.com's Taobao auction site controls 83% of the market as of Q2, according to research firm Analysis International. As for the domestic search market in Q3, Analysis International said Baidu maintained its sizable lead in Q3 domestic Chinese search market share at 61.5%, compared to Google at 22.5% and Yahoo! China at 10.6%. Baidu lost 0.5% to $334.30 during normal trading Thursday.
Commentary: Citigroup Sees Baidu.com Value Unlocked in Chinese Search • Credit Suisse Worries Baidu Could Be Hit By China Internet Crackdown • Is Now the Time to Buy Baidu Stock?
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