Baidu has updated its guidance for the fourth quarter of 2019. Baidu has also postponed the date for reporting its financial results for the fourth quarter to 27 February, “due to the evolving situation brought upon by the outbreak of the novel coronavirus in China”. This decision is expected to give Baidu “more time to observe the business condition for the first quarter of 2020”, the company said.
To help control the epidemic, the company has extended its employees' Chinese New Year holiday, which was originally scheduled from 24 to 30 January, and requested employees to work from home for a time after the holiday.
For the fourth quarter 2019, Baidu expects revenue of CNY 28.3-28.9 billion (approximately USD 4.06-4.15 billion), up 4-6 percent year-on-year, compared to its previous guidance of CNY 27.1-28.7 billion, or a 1 percent decline to a 6 percent increase. This forecast assumes that Baidu Core revenue will grow between 4 percent and 6 percent year-on-year, compared to the previous guidance of flat to 6 percent higher.
In addition, Baidu expects net income of CNY 6.2-6.7 billion, which assumes that net income attributable to Baidu Core will grow 83-90 percent year-on-year.
