fbpx
QQQ
-2.80
348.14
-0.81%
DIA
-4.84
343.49
-1.43%
SPY
-5.97
427.94
-1.41%
TLT
+ 2.32
140.73
+ 1.62%
GLD
-0.13
165.98
-0.08%

Tupperware's Earnings Are In Decline, Argus Says In Downgrade

July 31, 2018 1:45 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More

Argus is downgrading Tupperware Brands Corp. (NYSE:TUP) due to falling revenue and what the sell-side firm sees as an inability to drive growth. 

The Analyst

Argus analyst Deborah Ciervo downgraded Tupperware from Hold to Sell.

The Thesis

Following the release of second-quarter results and reduced full-year guidance, Tupperware shares fell 12 percent, contributing to the 39-percent decline of shares over the past 12 months, Ciervo said in the downgrade note. 

Despite Tupperware's efforts to strengthen its online presence, it is expected to face pressure from continued weak demand and slow revenue growth in the near term, the analyst said. 

Last week, Tupperware reported sales that were down 7 percent, in addition to finishing below consensus and management guidance. 

The home goods manufacturer expects EPS of 80-85 cents in the third quarter and a 3-5-percent sales decline, Ciervo said. 

For 2018 as a whole, Tupperware now expects adjusted EPS of $4.25-$4.35, down from a prior projection of $4.52-$4.67, excluding the impact of stock buybacks.

Tupperware also said it expected sales to be down 3-4 percent in local currency against a prior estimate of sales being flat to down 2 percent, the analyst said. The company expects a 2018 effective tax rate of 32.1 percent. 

Price Action

Tupperware shares were down 0.13 percent at $36.92 at time of publication Tuesday. 

Related Links:

Tupperware: What Went Wrong?

Colgate-Palmolive's Weak Sales Growth 'Will Become The Norm,' Macquarie Says In Downgrade

Photo by Fiertel91/Wikimedia. 

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to our YouTube channel.


Related Articles

Tupperware's Insider Selling Keeps This Analyst On The Sidelines

SunTrust Analysts Hopeful Tupperware Has Turned A Corner

Keybanc Defending Tupperware Brands, Maintains Overweight, Says Filing Delay Not About Accounting But About Checks/Balances Process

Morgan Stanley: Tupperware Brands Trips Over Low Bar