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Baidu Inc. (Nasdaq ADR: BIDU) stock reached an all-time high today (Friday) of $222.36 after the company reported earnings that topped analysts' estimates yesterday afternoon.
In the most recent quarter, China's search engine giant Baidu reported earnings per share (EPS) of $1.73, which outpaced consensus estimates of $1.40. Total revenue came in at $1.93 billion, which was an increase of 58.5% from the previous year. Operating profit grew 22.5% since last year, and was reported at $573.6 million.
Baidu is the largest Internet search provider in China, and is frequently referred to as the Google of China. The company has long dominated Chinese Internet search on personal computers, but has been making a strong push to bolster its presence on mobile devices.
By all accounts, the mobile efforts have paid off. For the first time, the company reported that revenue from mobile services accounted for 30% of the company's total revenue.
"We had a great quarter as we continued to build very strong mobile momentum," Chairman and Chief Executive Officer Robin Li said. "As the clear leader in mobile search, mobile map and app distribution, mobile revenue for the first time ever contributed to 30% of our total revenue."
The company has made large acquisitions in the mobile space in the last year including the $1.9 billion purchase of 91 Wireless Websoft Ltd., China's largest mobile-app store.
"In the second quarter, revenue remained on a solid growth trajectory, with mobile as an integral part of our business that is a clear driver of our topline," Baidu's Chief Financial Officer Jennifer Li said in a statement. "We will continue to invest in product and technology to deepen our market leadership and fulfill our long-term vision."
The company's outlook is optimistic too. In the third quarter, Baidu is expecting revenue in the $2.16 billion to $2.22 billion range – an increase of 50.9% to 55%.
While BIDU stock is trading at all-time highs today, the nature of the market it operates in could keep pushing this stock even higher…