US Treasury Treasury in China-Based Search Engine Baidu Inc. BIDU,
fell more than 6% in the extended session Thursday after the company reported a adjusted profit above Wall Street expectations and sales that met forecasts, but said its online advertising sales fell 8% year-on-year. Baidu said it earned RMB3.6 billion ($ 507 million), or $ 1.46 per ADR, in the quarter, compared to revenue of RMB2.4 billion a year ago. Customized for one-time items, the company earns $ 2.08 an ADR. Revenue fell 1% to RMB26.03 billion, or $ 3.7 billion, the company said. Analysts surveyed by FactSet expected adjusted revenue of $ 1.36 per ADR on sales of $ 3.7 billion. Online marketing revenue was 17.7 billion RMB ($ 2.50 billion), down 8%, the company said. “With COVID-19 becoming increasingly manageable in China, Baidu’s business is slowly being restored,” co-founder and chief executive Robin Li said in a statement, reflecting a statement he made in May. Baidu supported third-quarter revenue between RMB26.3 billion ($ 3.7 billion) and RMB28.7 billion ($ 4.1 billion), representing a negative growth rate of 6% and a growth rate of 2% year over year . “The situation of COVID-19 in China is evolving, and business visibility is very limited,” with the guidance “subject to substantial uncertainty,” the company said in the statement.
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