ZACKS·2025-10-30 22:45Core Viewpoint - Baidu Inc. is experiencing a decline in stock performance and is expected to report lower earnings and revenue in its upcoming financial results, indicating potential challenges ahead for the company. Group 1: Stock Performance - In the latest trading session, Baidu Inc. shares fell by 4.54% to $121.81, underperforming the S&P 500's loss of 0.99% [1] - Prior to the recent trading, Baidu's shares had decreased by 7.16%, contrasting with a 7.77% gain in the Computer and Technology sector and a 3.59% gain in the S&P 500 [1] Group 2: Upcoming Financial Results - Baidu Inc. is set to announce its earnings on November 18, 2025, with an expected EPS of $1.32, reflecting a 44.3% decrease from the same quarter last year [2] - The consensus estimate for revenue is $4.31 billion, indicating a 9.96% decline compared to the previous year [2] Group 3: Annual Forecasts - For the entire year, the Zacks Consensus Estimates predict earnings of $7.18 per share and revenue of $18.1 billion, representing declines of 31.81% and 2.1%, respectively, from the prior year [3] - Recent changes in analyst estimates suggest a shifting outlook on Baidu's business health and profitability [3] Group 4: Valuation Metrics - Baidu Inc. is currently trading at a Forward P/E ratio of 17.76, which is lower than the industry average Forward P/E of 26.59, indicating a potential discount [6] - The Internet - Services industry, to which Baidu belongs, has a Zacks Industry Rank of 91, placing it in the top 37% of over 250 industries [6] Group 5: Zacks Rank System - The Zacks Rank system, which evaluates estimate changes, currently assigns Baidu Inc. a rank of 3 (Hold), with the consensus EPS estimate having decreased by 1.47% in the past month [5] - The Zacks Rank has a proven track record, with 1 ranked stocks delivering an average annual return of +25% since 1988 [5]