of first quarter results beat expectations for adjusted earnings and sales, but shares of the Chinese research and artificial intelligence software company only edged up slightly.
Baidu reported adjusted earnings per share of 12.38 yuan (US $ 1.93), beating estimates of 10.51 yuan, according to FactSet. Total revenue of 28.1 billion yuan also exceeded estimates of 27.4 billion yuan, but shares of Baidu (ticker: BIDU) rose only 0.2% in trading on Tuesday.
Sales in Baidu’s main segment jumped 37% year-on-year to 20.5 billion yuan, with online marketing revenue generating 16.3 billion yuan. The turnover excluding marketing amounted to 4.2 billion. Sales of iQIYI video segment increased 4% year-over-year to 8 billion yuan.
“We are excited to bring innovation to many industries, including marketing cloud, enterprise cloud, intelligent transportation, autonomous driving, intelligent assistant and AI chip, through our ten-year investment in AI, ”CEO Robin Li said in a press release.
The company said its Apollo autonomous driving project has racked up 6.2 million miles of Level 4 autonomous driving, which is full range in limited settings. Apollo Go, which is an autonomous transportation service, is available at the site of the 2022 Winter Olympics, Shougang Park.
The company’s second-quarter outlook forecasts sales of between 29.7 billion yuan and 32.5 billion yuan. This includes sales growth for Baidu’s core segment of between 20% and 33% year-over-year.
Citi Research analyst Alicia Yap wrote on Tuesday morning that growth in Baidu’s core business suggests solid momentum for cloud revenue. She said the forecast was strong, adding that growth for the core segment “would likely benefit from the continued secular recovery in advertising revenue as well as the revenue growth momentum from cloud and other services.”
Baidu stock was among the names that sold out after the forced liquidation of Archegos Capital Management. Soros Fund Management bought shares of some of these companies in the first quarter, according to regulatory documents.
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