Tupperware Q3 Earnings Fall Short of Expectations
October 24, 2014 Leave a comment
As Tupperware Brands Corp. (TUP—NYSE) released its third quarter 2014 earnings Wednesday, shares dropped in reaction to the company’s lower than expected 2014 outlook. Tupperware traded 10 percent lower at $64.23 per share. Year to date, shares have fallen 24 percent.
With reported earnings of 90 cents per share, the company missed Wall Street estimates by 1 cent. This adjusted diluted EPS of 90 cents included a 14 cent negative impact versus 2013 from changes in foreign exchange rates, which were 2 cents below July’s guidance. Analysts surveyed by Zacks Investment Research had estimated earnings of 91 cents for the quarter.
Revenue fell 2.4 percent year over year to $588.7 million, compared to the $587.9 million consensus. The company also issued a lower guidance for fourth quarter with an EPS of $1.55 to $1.60 versus $1.70. Third quarter 2014 net sales in emerging markets accounted for 70 percent of sales, achieving an 8 percent increase in local currency. Established markets were down 4 percent in local currency.
GAAP net income of $32.3 million was down 35 percent versus prior year GAAP net income of $49.9 million. Excluding foreign currency, net income was down 24 percent versus prior year.