Baidu Q2 beats Wall Street
Chinese search engine Baidu Inc reported quarterly revenue that beat market expectations after advertisers shrugged off fears of a Chinese economic slowdown, pushing its shares up 7 percent after the bell.
Baidu, which controls more than two-thirds of the Chinese market, reported a second-quarter net income that almost doubled to $252.6 million, or 72 cents per American depositary share.
Revenue jumped 78.4 percent to $528.4 million, surpassing average forecast of $502.6 million, according to Thomson Reuters I/B/E/S.
Baidu, which has increased its focus on online video and e-commerce, has benefited in its core search business since Google Inc curtailed its operations after a high-profile fallout with Beijing over censorship.
Chinese online advertising is estimated to be growing at some 45 percent annually, although some analysts worry that corporations will begin tightening marketing budgets in anticipation of slowing economic growth.
Baidu's new, simplified Phoenix Nest platform for advertisers is expected to help retain key customers.
The shares were trading up at $168 in extended trade, after closing at $156.54 on Nasdaq on Monday.
(Reporting by Sayantani Ghosh in Bangalore; Editing by Unnikrishnan Nair)
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