Baidu is scheduled to report results for second quarter on Tuesday. Here's what you need to know:

NET PROFIT FORECAST: The Chinese search-engine company is likely to post net profit of 2.82 billion yuan, equivalent to $418.21 million, for the quarter, according to the consensus estimate of 11 analysts in a FactSet poll. That would mark a sharp decline from 7.32 billion yuan posted a year earlier.

REVENUE FORECAST: Baidu's second-quarter revenue is expected at 31.34 billion yuan, according to FactSet, lower than 32.71 billion yuan a year ago.

Baidu's Hong Kong-listed shares rose 3.7% during the quarter.

WHAT TO WATCH:

--OUTLOOK: The structural decline in Baidu's search ad business prompted Fitch Ratings to downgrade its long-term issuer default rating to A- from A. Emerging AI search and competing chatbots are also likely to weigh on the monetization of Baidu's search business, Fitch said in a note. Baidu's lower profitability reflects a weakening legacy business and relatively lower margins for non-marketing business, it added.

--REVENUE: Citi said it expects Baidu's general business revenue to decline by 3.6% on year in 2Q. Within Baidu's general business, Citi expects advertising revenue to decline by 20% on year, it said. AI cloud infrastructure business is likely to grow at 60% on year in 2Q, as demand for compute power remains strong, the bank said.