Baidu (NASDAQ:BIDU) is set to report third quarter earnings on Thursday, before markets open.

Wall Street expects Baidu to post EPS of $2.47, while revenue is expected to rise nearly 1.5% to $4.65 billion during the quarter.

Earlier in August, Baidu posted revenue below expectation, although its profit edged past Wall Street estimates. The company has faced increasing headwinds from the tough macroeconomy and intense competition from rivals. However, the company touted its AI capabilities, saying that it would boost its ad business.

“Baidu's AI innovations are impressive, but its core businesses are stagnant, and AI revenue impact remains marginal, limiting overall growth potential,” noted Seeking Alpha analyst Uttam Dey.

Over the last two years, Baidu has beaten EPS estimates 100% of the time and has beaten revenue estimates 88% of the time.

Seeking Alpha analysts, Wall Street are bullish and consider the stock a Buy, while Seeking Alpha’s quant rating are cautious and rated it a Hold.

Investors will focus on AI Cloud revenue growth, update on generative AI expansion and Apollo robotaxi business.

The company’s Apollo Go robotaxi unit is reportedly in talks with several firms to expand into overseas markets in the near future.

Over the last three months, EPS estimates have seen two upward revisions, compared to 11 downward revisions, while revenue estimates have seen no upward revisions versus 19 downward moves.

Baidu, which is a dominant search engine in China, has lost over 27% so far this year, compared to the 24% rise in the broader S&P500 Index.