BIDU is expected to report 3Q in mid-October.
We expect revs of $188M (high end of $184M-189M
guidance), above consensus of $186M, led by strong
growth in spend per customer. We expect GAAP
EPS of $1.80 vs. cons. of $1.77. Our checks suggest
meaningful growth in search, esp. FMCG
(incl. pharma/healthcare), a key segment for
BIDU. Based on CR Nielsen's stats, 2Q overall
ad spending was $22Bn (+17% Y/Y, +23% Q/Q).
However, investors are likely to focus on FY10
estimates, which mgt implied are aggressive vs.
current trends. We raise our '10 revs/EPS by
9% (+40% Y/Y)/16% (+43% Y/Y), respectively
on improved economic and ad spending outlook,
but are below consensus by 1% (+42% Y/Y)/
1.7% (+46% Y/Y), respectively.