Earnings Review and Free Research Report: Tupperware’s Adjusted EPS Jumped 18.40%; Beats Expectations

Research Desk Line-up: Ball Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 21, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Tupperware Brands Corp. (NYSE: TUP), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=TUP, following the Company’s posting of its third quarter fiscal 2017 financial results on October 25, 2017. The global leader in housewares manufacturing posted revenues growth of 3.39% for Q3 FY17. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Earnings Reviewed

Tupperware reported third-quarter fiscal 2017 revenue at $539.50 million compared to $521.80 million in Q3 FY16, reporting a 3.39% increase. The local currency sales grew by 2%, mainly from Brazil and China market. Tupperware’s revenue number beat analysts’ estimates by $538.80 million.

For Q3 FY17, cost of products sold amounted to $182.70 million compared to $168.40 million, resulting in an 8.49% increase y-o-y. The Company’s gross margin amounted to $356.80 million in Q3 FY17 in comparison to $353.40 million in Q3 FY16, thereby resulting in a 0.96% increase.

Tupperware’s operating income lowered by 25.27% with Q3 FY17 figures amounting to $68.00 million compared to $91.00 y-o-y. The Company’s total sales force count increased by 4% on a y-o-y basis.

The Company reported net income of $31.40 million, inclusive of lower pre-tax gains from real-estate transactions and higher pre-tax restructuring costs in the current quarter compared to $48.8 million in Q3 FY16, a decline of 35.66% y-o-y. Tupperware’s diluted EPS decreased by 36.46% on a y-o-y basis from $0.96 in Q3 FY16, mainly due to gain on sale of land, to $0.61 in Q3 FY17. The Company’s reported quarter adjusted EPS increased by 18.40% y-o-y to $1.03 and beat analysts’ estimates of $0.96.

Tupperware’s Segment Details

Tupperware’s geographic segments include: Europe, Asia/Pacific, Tupperware North America, Beauty North America, and South America.

During Q3 FY17, the Company’s net sales for Europe segment amounted to $110.80 million compared to $107.30 million in Q3 FY16, resulting in a 3.26% change. The segment’s loss increased by 33.33% to $2.40 million compared to $1.80 million in Q3 FY16. Emerging markets in the Europe Segment reported a 9.40% increase in net sales of $47.70 million in Q3 FY17 compared to $43.60 million in Q3 FY16.

The Asia/Pacific segment reported net sales of $184.40 million in Q3 FY17 compared to $188.90 million in Q3 FY16, resulting in a 2.38% decline y-o-y. The segment’s profit amounted to $49.50 million in the current quarter compared to $46.80 million in Q3 FY16. Significant decreases in net sales were due to the less productive workforce in the Indonesian market and constrained consumer spending in the Indian market due to levy of goods and services tax since July 01, 2017.

The North America segment posted net sales of $94.70 million in Q3 FY17 compared to $88.10 million in Q3 FY16, resulting in a 7.49% increase y-o-y. The segment’s profit amounted to $20.30 million in the current quarter compared to $17.20 million in Q3 FY16, resulting in an 18.02% increase y-o-y. A significant increase in net sales was due to larger sales force size in Mexico, despite the disruptions caused by natural disasters, and more active sellers in the United States and Canada.

Beauty North America segment reported net sales of $44.40 million in the current quarter compared to $43.20 million in Q3 FY16, resulting in a 2.78% increase y-o-y. The segment’s loss amounted to $4.60 million in the current quarter compared to $2.0 million in Q3 FY16, resulting in a 130% increment in losses y-o-y. Such significant losses were due to lower gross margins, increased inventory write-offs and Company’s announcement of winding down of beauticontrol operations.

The South America segment posted net sales of $105.20 million in Q3 FY17 compared to $94.30 million in Q3 FY16, therefore resulting in a 11.56% increase y-o-y. The segment’s profit amounted to $23.60 million in the current quarter compared to $23.90 million in Q3 FY16, resulting in a decline of 1.26% y-o-y. The significant increase in net sales was due to larger sales force in the Brazil market, and high inflation in Argentina and Venezuela.

Cash Matters

Tupperware reported net cash inflow from operating activities for 39 weeks period ending September 30, 2017, of $80.80 million compared to a net cash outflow from operating activities for 39 weeks period ending September 24, 2016, at $92.30 million, reporting a decline of 12.46% y-o-y.

The Company also reported cash and cash equivalents of $118.90 million for 39 weeks period ending September 30, 2017, in comparison to $98.50 million for the same period ending September 24, 2016.

On November 02, 2017, the Company, yet again, declared regularly quarterly dividend of $0.68 payable on January 05, 2018, to shareholders as on record date of December 20, 2017. The Company is not planning to make open market share repurchases in the fiscal year 2017.

Outlook

The Company’s full-year expectation for capital spending remains at $70 million, other than related to the land project and full year cash flow expectation, is in the range of $165 million to $175 million. Tupperware expects EPS for Q4 FY17 to be in the range of $1.48 to $1.53 and expected fiscal 2017 EPS to be in the band of $4.74 to $4.79.

Stock Performance

At the closing bell, on Monday, November 20, 2017, Tupperware Brands’ stock slightly slipped 0.08%, ending the trading session at $60.18. A total volume of 276.91 thousand shares have exchanged hands. The Company’s stock price advanced 5.39% in the last three months and 2.17% in the previous twelve months. Moreover, the stock surged 14.37% since the start of the year. The stock is trading at a PE ratio of 21.88 and has a dividend yield of 4.52%. The stock currently has a market cap of $3.06 billion.

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