Baidu.com, Inc. (ADR) (NASDAQ:BIDU) fights the China’s slumping economy and reports strong quarterly results

Baidu.com, Inc. (ADR) (NASDAQ:BIDU) fights the China’s slumping economy and reports strong quarterly results

Baidu.com, Inc. (ADR) (NASDAQ:BIDU) is up 9% after the Chinese search engine reported a boastful second quarter results.

Net earnings of $436 million increased 69.6% as compared to the year ago June quarter net earnings. Earning per share reported by Baidu was $1.24 per ADS while non GAAP earning per ADS was $1.26.

Total revenue reported by Baidu was RMB 5.456 billion or $858.8 million implying an increase of 59.8% yoy. Online marketing customers have increased 9.7 sequentially leading to an increase of 59.7% qoq in the online marketing revenue of RMB 5.452 billion or $858.1 million. The revenue per online marketing customer increased 16.5% sequentially and 34.8% yoy to RMB 15,500 or $2,440.

Operating profit was RMB2.815 billion ($443.1 million), representing a 51.5% increase from the corresponding period in 2011. Operating margin posted by the search engine in the quarter was 51.5% as compared to operating margin of 49.04% in the last quarter and 54.41% reported in the same period year ago.

Net income on GAAP basis was RMB 2.77 billion and adjusted net income was RMB was 2.82 billion after excluding stock based compensation of RMB 0.54 million.

The Company ended the quarter with cash and cash equivalents of RMB 18.257 billion or $2.874 billion while cash from operations was RMB 3.04 billion or $478.6 million.

Shares of Baidu.com, Inc. (ADR) (NASDAQ:BIDU) is up 8.54% at $116.25 trading price and is being traded on 3 times the average trading volume. Shares of other service providers are also up after Baidu’s announcement of the June quarter results.