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Baidu
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the Chinese search-engine big, reported a third-quarter lack of 16.6 billion yuan ($2.6 billion) after recording important expenses, but income jumped 13% and beat analysts’ estimates. 

U.S.-listed shares of Baidu (ticker: BIDU) rose 2.2% to $175.05 in premarket buying and selling. The inventory rose 0.5% in Hong Kong.

The loss within the newest third quarter included a non-cash loss in long-term investments of 18.9 billion yuan. 

In an electronic mail despatched to Barron’s, Baidu mentioned non-GAAP earnings attributable to the corporate, “which can better reflect Baidu’s healthy business operation,” had been 5.1 billion yuan, or $790 million.

A 12 months earlier, Baidu earned practically 13.7 billion yuan. 

Revenue within the third quarter of 31.92 billion yuan topped analysts’ estimates of 31.52 billion. Baidu mentioned income from its core operations rose 15% 12 months over 12 months to 24.7 billion yuan. 

“Baidu Core delivered another solid quarter, powered by our AI cloud revenue growing 73% year over year,” mentioned Rong Luo, chief monetary officer. “With a diversified AI portfolio, including cloud services, smart transportation, smart devices, self-driving, smart EV and robotaxi, we are well positioned for long-term growth.” 

Baidu mentioned in its electronic mail that AI Cloud “continues to hold its firm position among the top four cloud providers in China, with revenue growth exceeding 70% for two consecutive quarters.”

For the fourth quarter, Baidu mentioned it expects income of between 31 billion yuan and 34 billion yuan, representing progress price of two% to 12% 12 months over 12 months. The forecast, Baidu mentioned, assumes that core income will develop between 5% and 16% from final 12 months. 

Baidu cautioned in a press launch Wednesday that the “Covid-19 situation in China is evolving and business visibility is limited.” 

Baidu shares traded within the U.S. have declined greater than 20% in 2021. The inventory has suffered, together with lots of China’s tech corporations over the previous few months, on concerns about Beijing’s regulatory clampdown on the tech industry.

Write to Joe Woelfel at joseph.woelfel@barrons.com