03:34 PM EDT, 10/23/2024 (MT Newswires) -- Reynolds Consumer Products ( REYN ) is expected to report in-line Q3 earnings on Oct. 30, while revenue is likely to be below consensus, UBS said in a report Wednesday.

The investment firm models earnings of $0.41 per share for the quarter, which is at the midpoint of the company's guidance of $0.39 to $0.43. UBS projects revenue of $898 million versus consensus of $901 million, and also sees in-line EBITDA at $170 million.

The company is likely to maintain its 2024 outlook amid uncertainty around consumer demand, though narrowing the ranges won't be entirely surprising especially if Q3 results come in above estimates, UBS said. Reynolds said in August it was expecting adjusted EPS of between $1.65 and $1.71 on revenue of $3.59 billion to $3.67 billion for the full year.

Investors, however, have increasingly been looking ahead to 2025 and are showing preference for companies "where there is comfort that top line growth can show improvement sequentially," the investment firm said.

"With the impacts of non-retail sales and [stock keeping unit] rationalization now moving into the rear view, we would anticipate reported top line growth to accelerate vs. a challenging '24," UBS said. "However, with category growth still muted, we think many are still unsure as to when organic revenue growth will consistently return to the company's [long-term] historical algorithm of [least single digit]."

UBS has a neutral rating on Reynolds and a $33 price target.

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