Baidu Projects Sales That Miss Estimates on Struggles With Ads

Baidu Inc., China's largest search provider, forecast sales below analysts' estimates in the current quarter, dogged by government-imposed restrictions and rising competition for its advertising business. The company projected revenue of 20.47 billion yuan ($2.97 billion) to 20.98 billion yuan, compared with analysts' average estimate of 20.94 yuan. Shares declined as much as 6.3 percent in extended trading after closing at $187.86 in New York. Baidu is entering a critical year after sales in 2016 grew at their slowest pace on record, depressed by competition from the likes of Sogou as well as regulatory curbs on advertising content. The death of a 21-year-old student who sought unconventional medical treatment through ads on its search engine triggered a government probe and subsequent restrictions.