Tupperware Brands Corporation

Tupperware Brands Corporation (TUP - Snapshot Report) has been surging lately as shares more than doubled off recent multi-year lows. Analysts are optimistic on earnings, lifting year 2009 estimates by 2 cents to $2.21 per share in just the past week.

Company Description

Tupperware Brands Corporation is a global direct seller of premium, innovative products across multiple brands and categories through an independent sales force of over 2 million.

Product brands and categories include design-centric preparation, storage and serving solutions for the kitchen and home through the Tupperware brand as well as beauty and personal care products through its Avroy Shlain, BeautiControl, Fulller, NaturCare, Nutrimetrics, and Nuvo brands.

Strong First Quarter

The company recently posted first-quarter adjusted earnings of 45 cents per share, jumping ahead of the consensus estimate by 32%.

Management noted that, in light of the current economic picture, Tupperware was happy to deliver local currency top line growth in a significant portion of the company’s portfolio and 1% overall.

Chairman and CEO, Rick Goings said Tupperware continued to achieve double digit local currency sales growth in the 49% of its business that came from emerging markets, with sales up 10% in local currency (down 13% reported). He added that there were strong double digit increases in the Tupperware Russia, Indonesia, Brazil and Venezuela businesses. TUP’s established markets as a group were down 7% in local currency (down 16% reported). “What we really saw in the first quarter, especially in our established markets, was a shift in consumer sentiment between January and February from being almost frozen to slowly beginning to spend again. The pickup in February and March overcame the January decrease by a small margin,” said Goings.

Bullish Forecasts

Tupperware hiked its full-year guidance to a range of $2.16 to $2.26 per share. Analysts are also optimistic on earnings, lifting year 2009 estimates by 2 cents to $2.21 per share in just the past week.

The company’s earnings per share are expected to grow 12% over the next 3 – 5 years, which is ahead of the industry average of 11%.

Shares have been soaring lately, receiving an extra boost on first-quarter earnings.

More Favorable Comparisons

Tupperware offers a return on equity (ROE) of 31%, which is in line with the industry average. The company’s net profit margin of 7% exceeds the industry average of 5%. TUP also pays a annual dividend of 88 cents, which translates into an industry-leading yield of 3.5%.