Tupperware Brands Corp. (TUP) Wednesday reported a better-than-expected rise in first-quarter earnings on strong demand for its home and personal care products in South America and Asia Pacific regions, while its major markets of Europe and North America saw declines.
Going forward, Tupperware provided its earnings outlook for the second quarter, while raising its earnings estimates for the full year 2012 to partly reflect a gain from a property sale. Tupperware shares are up over 5 percent on the New York Stock Exchange.
Tupperware's quarterly sales were up slightly in terms of U.S. dollars, and rose 3 percent in local currency. South America sales surged 24 percent from last year, followed by Asia Pacific that gained 11 percent. Europe sales dropped 6 percent and Beauty North America was down 13 percent.
CEO Rick Goings said, "...Our emerging markets, that generated 59% of sales in the quarter, were up 4% in dollars and 8% in local currency, and drove our overall increase as our established markets were down 3%..."
Tupperware reported first-quarter net income of $58.3 million or $1.02 per share, compared to $55.8 million or $0.88 per share last year. Excluding items, adjusted earnings for the quarter totaled $1.03 per share.
On average, 8 analysts polled by Thomson Reuters expected earnings of $0.96 per share for the quarter. Analysts' estimates typically exclude special items.
Orlando, Florida-based Tupperware reported quarterly sales of $639.5 million, compared to $636.4 million a year ago. Analysts expected revenue of $624.51 million for the quarter.
During the first quarter 2012, Tupperware repurchased about 0.8 million shares aggregating $50 million and expects to buyback $25 million worth of shares in the second quarter.
Tupperware estimates second-quarter net earnings of $75.7 million to $78.7 million or $1.34 to $1.39 per share, and adjusted earnings of $69.6 million to $78.7 million or $1.23 to $1.28 per share. Analysts currently expect earnings of $1.32 per share.
Tupperware now expects fiscal 2012 net earnings of $279.6 million to $285.2 million or $4.96 to $5.06 per share, and adjusted earnings of $282 million to $287.6 million or $5.00 to $5.10 per share. Analysts currently expect earnings of $5.04 per share for the year.
Tupperware had earlier forecast fiscal 2012 net earnings of $271.5 million to $277.2 million or $4.85 to $4.95 per share, and adjusted earnings of $279.8 million to $285.5 million or $5.00 to $5.10 per share.
TUP is trading at $63.58, up $3.41 or 5.67%, on the NYSE. In the past year, the stock has ranged between $49.86 and $71.99.
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