10:58 AM EDT, 06/24/2025 (MT Newswires) -- McCormick ( MKC ) is expected to report "solid" fiscal Q2 results, however, it's difficult to have confidence in any updates to full-year 2025 earnings per share guidance due to ongoing uncertainty around tariffs, UBS said in an earnings preview Monday.

The food company is scheduled to report its Q2 results on Thursday, before markets open.

Analysts, including Bryan Adams, said that most investors seem prepared for full-year EPS guidance to be revised toward the lower end of the current $3.03 to $3.08 range. The biggest concern is added cost pressure from tariffs in H2, which may more than offset small benefits from foreign exchange. There is also some worry about both revenue and profit performance in the Flavor Solutions segment, the analysts said.

The potential cost from new tariffs is the biggest unknown heading into the earnings report, the analysts said, adding they believe the full-year unmitigated impact could total around $150 million, equivalent to roughly 15% of gross earnings. They said that while McCormick ( MKC ) is likely to offset some of that through pricing strategies and productivity efforts, there are concerns that passing costs along to customers could be more difficult in the Flavor Solutions segment due to long-term contracts.

UBS analysts said they do not expect "a meaningful incremental tariff impact on fiscal Q2 given the timing of inventory."

The analysts are projecting fiscal Q2 EPS at $0.65, slightly below consensus estimates of $0.66, and the full-year EPS estimate is $3.02, one cent below the bottom of the company's guidance range, but still in line with the Street consensus expectations.

UBS initiated coverage on McCormick ( MKC ) with a neutral rating and a $83 price target.

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