3 Min Read
* Q1 rev up 75 pct year-on-year to $677 mln
* Q2 rev range of $847.2 mln to $867 mln
* Shares down in after hours trading
By Alexei Oreskovic
SAN FRANCISCO, April 24 (Reuters) - Baidu Inc shares slid more than 10 percent on Tuesday after the Chinese Internet search company forecast a second-quarter revenue range at the low end of Wall Street expectations.
The disappointing guidance raised questions about whether Baidu's business is being affected by economic conditions in China or whether company-specific issues are to blame, analysts said.
"At the end of the day, people expect these companies to beat numbers. They have a track record of usually beating," said Raymond James analyst Aaron Kessler.
Baidu said that revenue in the second quarter will range between $847.2 million and $867 million. The $857.1 million midpoint of the range was below the $862.8 million expected by analysts polled by Thomson Reuters I/B/E/S.
Baidu shares fell more than 10 percent in after-hours trading to $121.50 from a close on the Nasdaq of $135.83.
Baidu has expanded its dominant position in China's Internet search market ever since Google Inc decided in 2010 to relocate its search engine to Hong Kong following a standoff with the Chinese government over Internet censorship.
But its search market is increasingly encroached upon by Alibaba Group's Taobao and Sohu.com Inc's Sogou. Baidu's efforts to expand into the mobile, travel, ecommerce and online video sectors have also not seen immediate gains.
Baidu CEO Robin Li said in a statement on Tuesday that the company expanded the number of its small and medium-sized business customers, despite what he said was "usually a seasonally slow quarter."
Baidu said its net income in the three months ended March 31 increased roughly 76 percent year-over-year to $299 million, or 85 cents per ADS.
Revenue in the first quarter was up 75 percent at $677 million, roughly in line with analyst expectations.
Baidu shares have gained more than 24.4 percent since the start of the year.
Baidu executives will hold a conference call to discuss the quarterly report with analysts later on Tuesday.