02:47 PM EDT, 10/22/2024 (MT Newswires) -- Mondelez International's ( MDLZ ) upcoming Q3 results are generating mixed investor sentiments as many expect strong results but concerns about weaker Q4 guidance and a challenging 2025 are weighing on expectations, UBS Securities said in an earnings preview emailed Tuesday.

The firm expects Mondelez ( MDLZ ) to report Q3 earnings of $0.84 per share on revenue of $9.10 billion, versus consensus estimates of $0.85 and $9.11 billion, respectively.

"Bulls continue to point to the underperformance and argue that Mondelez ( MDLZ ) still provides a degree of top-line visibility that not many in Packaged Food can offer," UBS said.

UBS added that a key focus will be on the Q4 guidance, particularly regarding rising cocoa costs, which may signal a more challenging year in 2025.

"Bears agree that Q3 is likely to be strong, but are concerned that a much weaker implied Q4 guide is likely to suggest that 2025 is going to be another challenged year with outsized inflation leading to muted EPS growth," UBS said.

Mondelez ( MDLZ ) is expected to maintain its 2024 guidance of high-single-digit constant currency EPS growth and organic growth at the high end of its long-term algorithm of 3% to 5%, according to the note.

Mondelez ( MDLZ ) will report its Q3 financial results on Oct. 29.

UBS reiterated its neutral rating for Mondelez's ( MDLZ ) stock and kept the price target at $77.

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