Top Performer for Wed: Tupperware (TUP)

Yesterday, Tupperware Brands Corporation (TUP - Snapshot Report) announced a third-quarter report that included a positive earnings surprise, a (slight) gain in sales, a raised full-year guidance and a raised dividend.

As a result, shares of this kitchen food storage staple have advanced approximately 10% today, making it a Zacks #1 Rank Top Performer. Volume has surged today by about 2.3 million shares, compared to the daily average around 601,000.

Even before the quarterly report, earnings estimates on TUP had been advancing. The Zacks Consensus Estimate for this year stands at $2.73 per share, which is up 2.6% from $2.66 in the past month on raised estimates from 4 of 7 covering analysts. The past 7 days have seen a slight advance of a penny.

Meanwhile the Zacks Consensus Estimate for next year is at $3.19 per share, or 4.6% better than a month ago. Four of 6 covering analysts contributed to this increase. TUP has also enjoyed a gain of nearly 2% in just the past week.

Furthermore, the expectation for next year suggests year-over-year profit growth of nearly 17%.

Raised Guidance for 2009

The biggest news from Tupperware's third-quarter report was it's raised guidance for the full year. The company now expects earnings per share, excluding items, between $2.84 and $2.89 for 2009. Previously the company had been anticipating $2.59 to $2.64.

Sales are expected to increase in local currency by 5% to 6% over 2008, instead of just 3% to 5%.

TUP also offered an initial profit guidance for 2010 between $3.33 and $3.43, excluding items. Sales growth is expected at 6% to 8% in local currency.

"We believe that we have the right products and business models in place, and expect continued growth in the future," said Chairman/CEO Rick Goings. "After all, we have a lot of white space before us in our established markets and substantial room to grow in our emerging markets."

Third-Quarter Report

The quarter saw adjusted earnings per share of 54 cents, which beat the Zacks Consensus Estimate by nearly 30%. The result also advanced on a year-over-year basis.

Sales of $514 million were slightly above the year-ago result, which is encouraging since many companies are experiencing drops in sales even as they surpass earnings expectations.

TUP enjoyed top line growth in local currency in all 5 of its segments. Emerging markets were up 15% while established markets gained 2%.

TUP also raised its quarterly dividend by 14% to 25 cents from 22 cents (payable to shareholders of record as of Dec 4, 2009 that will be paid on Jan 4, 2010).

Its Board also decided to increase repurchases to further offset the dilution associated with shares that become outstanding under the company's incentive programs.

Tupperware

TUP is a portfolio of global direct selling companies, selling premium innovative products across multiple brands and categories through an independent sales force in the millions. Product brands and categories include design-centric preparation, storage and serving solutions for the kitchen and home through the Tupperware brand, and beauty and personal care products for consumers through the Armand Dupree, Avroy Shlain, BeauiControl, Fuller Cosmetics, NaturCare, Nutrimetrics, Nuvo and Swissgarde brands.

TUP is the only company from the consumer staples-miscellaneous staples industry on today's Zacks #1 Rank List, which includes 220 stocks.

Read the full analyst report on TUP