China-based internet search firm Baidu Inc. (NASDAQ: BIDU) reported financial results for the second quarter of 2020 on Thursday after the market’s close. Earnings exceeded analysts’ expectations, but the company’s stock dropped immediately after the announcement.
Adjusted earnings per ADS rose to RMB 14.73 or US$2.08 from RMB 10.11 in the second quarter of 2019. Net income was RMB 3.58 billion or US$507 million, compared to RMB 2.41 billion last year. Analysts had predicted a decline.
Total revenues decreased 1% annually to RMB 26.0 billion or US$3.69 billion from RMB 26.3 billion a year earlier. The top-line came in slightly below the estimates. A marked increase in cloud services, smart devices, and iQIYI membership revenues was partially offset by lower online marketing revenues.
Baidu’s shares closed Thursday’s regular trading lower and continued to lose during the extended session.