Tupperware Brands Misses on the Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Tupperware Brands (NYS: TUP) reported earnings on Feb. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Tupperware Brands missed slightly on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue improved and GAAP earnings per share grew significantly.

Gross margins increased, operating margins shrank, and net margins increased.

Revenue details
Tupperware Brands logged revenue of $676.1 million. The four analysts polled by S&P Capital IQ predicted sales of $689.0 million. Sales were 3.2% higher than the prior-year quarter's $655.0 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $1.50. The seven earnings estimates compiled by S&P Capital IQ averaged $1.53 per share. GAAP EPS of $1.50 for Q4 were 18% higher than the prior-year quarter's $1.27 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 66.5%, 60 basis points better than the prior-year quarter. Operating margin was 18.1%, 100 basis points worse than the prior-year quarter. Net margin was 12.9%, 60 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $636.2 million. On the bottom line, the average EPS estimate is $0.98.

Next year's average estimate for revenue is $2.64 billion. The average EPS estimate is $5.02.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 389 members out of 405 rating the stock outperform, and 16 members rating it underperform. Among 132 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 128 give Tupperware Brands a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tupperware Brands is outperform, with an average price target of $69.80.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Tupperware Brands. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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