Baidu (BIDU $38.39 +3.48) reported second quarter earnings of $0.72
per share, $0.07 better than the Capital IQ Consensus Estimate of $0.65.
Revenues rose 79.0% year/year to $528.3 million versus the $498.5 million
consensus.
Traffic acquisition cost (TAC) as a component of cost of revenues was RMB269.1
million ($41.6 million), representing 7.9% of total revenues, as compared to
9.7% in the corresponding period in 2010 and 8.2% in the first quarter of 2011.
Selling, general and administrative expenses were RMB377.5 million ($58.4
million), representing an increase of 42.5% from the corresponding period in
2010, primarily due to increased personnel costs and marketing expenses.
In the third quarter, the company issued upside guidance, sees third quarter
revenues of $611 million to $626 million versus the $561.01 million Capital IQ
Consensus Estimate.






