03:40 PM EDT, 06/21/2024 (MT Newswires) -- Levi Strauss (LEVI) is expected to report "solid" inline fiscal Q2 results on Wednesday, reflecting solid trends in the company's Americas and Asia business and concerns over European wholesale partners potentially limiting revenue growth in the quarter, UBS said in a note Friday.

The investment firm estimates sales for the quarter to increase 7.5% from a year earlier to $1.44 billion, compared with the consensus estimate of $1.45 billion. UBS estimate consists of a revenue jump of more than 11% to $678 million in the Americas, an increase of 3.8% to $375 million in Europe, a 3.1% rise to $270 million in Asia, as well as other brands sales, including Dockers and Beyond Yoga, jumping 8.2% to $114 million, UBS said.

UBS also expects adjusted earnings of $0.11 per diluted share, in line with the consensus estimate, according to the note.

Levi Strauss is also expected to maintain its fiscal 2024 EPS guidance of $1.17 to $1.27 per share, UBS said.

"We see modest upside risk to this outlook given improving fundamentals. At the same time, we believe the market has similar expectations and this causes us to see a balanced upside/downside skew around the event," UBS said.

While the options market is currently pricing in a plus or minus 7.6% stock move over the event against a 6.3% historical average move, the firm said it anticipates less volatility than that, according to the note.

UBS kept its buy rating on the company's stock, with a $25 price target.

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