Tupperware Q3 Results Miss View; Narrows 2013 Adj. Earnings Outlook

(RTTNews) - Home and personal care products seller Tupperware Brands Corp. (TUP) on Wednesday reported a 5 percent increase in profit for the third quarter from last year as higher sales in emerging markets helped offset lower sales in established markets. However, both revenue and adjusted earnings per share for the quarter missed analysts' expectations.

Looking ahead, Tupperware narrowed its adjusted earnings outlook for fiscal 2013 and now projects sales for the year at the low end of its prior range. Shares of the company are trading lower by more than 4 percent in the regular trading session.

Rick Goings, Chairman and CEO of Tupperware said, "There were a number of external events during the quarter including storms and floods, impacts on consumer spending from currency devaluations and tax increases, and political unrest. While we are not immune to their impact, the flexibility of our business model enabled us to navigate through these external factors and deliver another strong quarter."

Orlando, Florida-based Tupperware's net income for the third quarter was $49.9 million or $0.95 per share, up from $47.5 million or $0.85 per share in the previous-year quarter.

On adjusted basis, earnings for the quarter were $1.00 per share, compared to $0.95 per share in the year-ago period. On average, ten analysts polled by Thomson Reuters expected the company to report earnings of $1.03 per share for the quarter. Analysts' estimates typically exclude one-time items.

The company noted that the adjusted earnings per share figure included $0.09 of negative impact versus 2012 from changes in foreign exchange rates that was $0.04 worse than assumed in July's guidance.

Net sales for the quarter increased 1 percent to $603.2 million from $594.4 million in the same period last year. Analysts had a consensus revenue estimate of $623.34 million for the quarter.

Sales rose 6 percent in local currency. Sales in emerging markets, accounting for 69 percent of total sales, recorded a 13 percent increase in local currency, while sales in established markets were down 8 percent in local currency.

Sales declined in Europe and Beauty North America segments, while it increased in the Asia Pacific, South America and Tupperware North America segments.

Looking ahead to the fourth quarter, Tupperware forecasts reported earnings in a range $1.75 to $1.80 per share, and adjusted earnings in a range of $1.83 to $1.88 per share. The company also forecasts sales growth in a range of 2 to 4 percent.

Analysts expect the company to report earnings of $1.86 per share for the quarter on revenues of $738.07 million.

For fiscal 2013, Tupperware lowered its outlook for reported earnings to a range $5.17 to $5.22 per share from the prior range of $5.20 to $5.30 per share. The company tightened its outlook for adjusted earnings to a range of $5.45 to $5.50 per share from the prior range of $5.44 to $5.54 per share.

The company now projects a 4 percent increase in sales for the year, compared with the prior range for an increase of 4 to 5 percent.

Analysts expect the company to report earnings of $5.54 per share for the year on revenues of $2.71 billion.

In Wednesday's regular trading session, TUP is trading at $89.79, down $4.41 or 4.68 percent on a volume of 251,902 shares.