Here's What Analysts Are Forecasting For Baidu, Inc. (NASDAQ:BIDU) After Its Annual Results

Baidu, Inc. (NASDAQ:BIDU) shareholders are probably feeling a little disappointed, since its shares fell 7.2% to US$89.65 in the week after its latest yearly results. Baidu reported CN¥133b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of CN¥65.91 beat expectations, being 3.2% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Baidu

Taking into account the latest results, the most recent consensus for Baidu from 35 analysts is for revenues of CN¥137.3b in 2025. If met, it would imply a credible 3.1% increase on its revenue over the past 12 months. Statutory earnings per share are expected to decline 11% to CN¥60.62 in the same period. Before this earnings report, the analysts had been forecasting revenues of CN¥137.3b and earnings per share (EPS) of CN¥59.96 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of US$110, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Baidu at US$157 per share, while the most bearish prices it at US$76.68. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Baidu's past performance and to peers in the same industry. We would highlight that Baidu's revenue growth is expected to slow, with the forecast 3.1% annualised growth rate until the end of 2025 being well below the historical 5.4% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 10% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Baidu.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Baidu's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Baidu. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Baidu analysts - going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.