updated 06:07 pm EDT, Mon July 23, 2012
Net income up 70 percent
Baidu, leader in the Chinese Internet search sector, reported profits for the second quarter that exceeded analysts' predictions, causing shares in the company to jump on the news. Baidu credited its ability to bring in new customers as the reason it outperformed expectations. As the Associated Press recounts, the search company expects its profits to continue growing at a considerable pace.
Baidu reported $436 million in net income for the three months ended June 30. Revenues for the Chinese company were up 60 percent year-over-year to $859 million, while analysts had expected $856 million. Today's numbers caused shares in the company to rise $7.15, or 6.7 percent, to $114.25 in after hours trading, though they closed down 2.8 percent at $107.10 in the regular session.
At 83.6 percent, Baidu holds an overwhelming majority share in the Chinese Internet search sector, and the company has been branching out to cement that standing in recent months. In May, Baidu inked a deal with Apple to integrate its search engine into iOS for the Chinese iPhone. Baidu is also working on a smartphone platform that would see its cloud services running atop Windows Phone, Android, and iOS operating systems.