* 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 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
"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.