Baidu's Q3 hurt by expenses
"China's leading Internet search engine, Baidu.com Inc. (BIDU), said third-quarter profit nearly tripled, but shares fell 15 percent as ballooning expenses caused earnings to miss expectations.
Baidu reported third-quarter earnings of 8.5 million yuan (US$1.1 million) versus or 2.9 million yuan a year earlier. Diluted earnings per American Depositary Share (ADS) were 0.26 yuan (3 cents), compared with two analyst estimates of 4 cents per diluted ADS.
Expenses almost tripled from the year-earlier period and were up 43 percent from the previous quarter, driven by increased bandwith and marketing costs.
Revenue jumped 174 percent to 88.9 million yuan, exceeding the company's previous forecast."