Tupperware Posts Upbeat Q1 Earnings, But Issues Weak Forecast

reported better-than-expected earnings for the first quarter, but issued a weak outlook for the second quarter. For the current quarter, the company projects adjusted earnings of $1.14 to $1.19 per share, and revenue to drop 11 percent to 13 percent. Analysts had expected earnings of $1.23 per share. Tupperware projects FY15 earnings of $4.60 to $4.70 per share, versus analysts' estimates of $4.80 per share. The Orlando, Florida-based company posted quarterly earnings of $29.5 million, or $0.59 per share, compared to $52.2 million, or $1.04 per share, in the year-ago quarter. Excluding items, the company earned $1.02 per share. Its sales dropped to $582 million from $663 million. However, analysts were expecting earnings of $0.98 per share on revenue of $578.55 million. Established-market sales slipped 6 percent in local currency. North America's segment sales rose 4 percent in local currency and slipped 2 percent in U.S. dollars. Europe segment sales slipped 3 percent in local currency. The average estimate among 10 Estimize users was for earnings of $1.00 per share and revenue of $584.07 million. Rick Goings, Chairman and CEO, commented, "We delivered right in the middle of our sales guidance in the first quarter, up 3% in local currency, despite a difficult comparison and a few challenged markets, demonstrating the strength of our diversified global portfolio. Significant contributors to sales growth were Argentina, Brazil, China, Tupperware U.S. and Canada, and the South African businesses." Tupperware shares closed at $69.85 yesterday.