The Chinese government has instructed companies operating in the affected areas to suspend their operations, so as to carry out the containment drive effectively. iQiyi plans to hold an earnings conference call on February 27 at 7:00 pm ET.
Lifts Outlook
Currently, Baidu’s management is looking for a 4-6% growth in fourth-quarter revenues to the range of RMB 28.3 billion or US$4.06 billion to RMB 28.9 billion or US$4.15 billion, which is slightly above the company’s earlier forecast. Core revenue is forecast to grow 4-6%. The company also predicts that adjusted net income attributable to Baidu Core would grow 50-55% year-over-year.
Q3 Outcome
In the third quarter of 2019, Baidu’s adjusted earnings plunged 36% year-over-year to $1.76 per ADS as weakness in the core business weighed on the top-line. At $3.92 billion, revenues were up 3%.
Last week, the positive guidance issued by the management triggered a rally and the shares have been gaining strength since then. In the past twelve months, the stock dropped 22%.