Food storage and beauty products maker Tupperware Brands Corporation (TUP) reported better-than-expected first quarter earnings late Tuesday, and raised its full-year guidance, sending its shares significantly higher.
The Orlando-based company resported fiscal first quarter net income of $25.6 million, or 41 cents per share, down from $32.1 million, or 51 cents per share, in the year-ago period. Revenue fell 14.8% percent to $462.8 million, but still bested analyst estimates of $459.50 million.
Excluding one-time items, Tupperware earned 47 cents per share in the quarter, easily besting Wall Street estimates of 34 cents per share.
For the fiscal second quarter, the company said it expects EPS between 62 cents and 67 cents. It also raised its full-year forecast to a range of $1.90 to $2.00 per share, while Wall Street estimates sit at $1.96 per share.
Tupperware shares rallied more than 20% in morning trading Wednesday, before losing some ground, up $3.75, or +17%, by late morning.
The Bottom Line
We had removed shares of TUP from our “Recommended” list back on Sept.2, when shares traded at $34.26. The company currently has a dividend yield of 4.12%, based on last night’s closing stock price of $21.36. The stock has technical support in the $16-19 price area. If the shares can build on today's momentum, we see overhead resistance around the $28 mark. We would remain on the sidelines for now.
Tupperware Brands Corporation (TUP) is not recommended at this time, holding a Dividend.com DARS Rating of 2.9 out of 5 stars.
Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.
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