Friday, 2 October 2015

Alba holds TUP 49.45: Analysts expect that Tupperware Brands will post $4.66 EPS for the current fiscal year.

The company reported $1.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.17 by $0.04. The company had revenue of $588.90 million for the quarter, compared to the consensus estimate of $590.59 million. For this reason alone, I'm staying away from Tupperware right now but if management decides to invest in ways to radically refresh its brand I think there could be some prospects here for investors who don't mind the risk of a turnaround. Furthermore, since the decline in results has been taking place since 2013, it's evident that the company has something more fundamental wrong with it. Yes, its active sales force is right slowly but the fact that unit count has fallen so much and in such a short period of time is a major concern. As more options become available, both online and in stores, it seems as though the prestige of the Tupperware brand is suffering.


Glenn:
According to management, the number of units sold fell a whopping 13% year-over-year, led largely by declines in South America, Beauty North America, and Europe.

Jetta:
While the number of its active sales force managed to inch up for the quarter (compared to last year's second quarter), the big issue is that customers aren't willing to buy Tupperware's products anymore.

Twyla:
Of course, some investors may say that this is a temporary downturn (and it may be) but I have a hard time believing this to be the case right now.

Zenaida:
Net income fared even worse, dropping a whopping 21.8% from $214.4 million to $274.2 million as falling sales and rising costs negatively affected profits.

Katrina:
After accounting for these and applying the appropriate tax rates, Tupperware's net income for the quarter would have been $53.5 million, 9% lower than the $58.82 million it would have been last year.

Carmelita:
For the quarter, the company saw its net income soar by 30.3% from $47.6 million to $62 million.

Aide:
On the bottom line, things look much better but investors need to account for one-time items to get the full picture.

Ann:
According to the company, this drop in sales came from every region (except for TW North America, which saw a modest improvement), especially Europe, which reported a $30.2 million decline in sales.

Joleen:
For the quarter, Tupperware's revenue came in at $588.9 million, roughly 12.7% below the $674.3 million management reported the same quarter last year.

Trudie:
Based on the data reported by Tupperware recently, it's very possible that the second scenario is accurate.

Tupperware Corp. (NYSE:TUP)
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