Tupperware Brands

Tupperware Brands Corporation (TUP - Snapshot Report) recently posted solid results, including higher sales and growth in all 5 segments. TUP issued an adjusted full-year 2008 guidance of $2.50 to $2.60 per share. Three out of four covering analysts have current forecasts pegged $2.55 per share, up from last month’s $2.35. The company’s earnings per share are expected to grow 17% over the next 3 – 5 years, which above the industry average expectation of 11%. Tupperware’s ROE of 31% also tops the industry average of 28%.

Full Analysis

Tupperware Brands engages in the manufacture and sale of kitchen products, and beauty and personal care products worldwide. The company offers food storage, serving, and preparation products, as well as kitchen tools, children's educational toys, microwave products, and gifts. Its cosmetics and personal care products include skin care products, cosmetics, bath and body care, toiletries, fragrances, nutritional products, apparel, and related products. The company offers its kitchen and home products under the brand name Tupperware; and beauty and personal care products under the Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, Nuvo, and Swissgarde brand names.

The company recently announced that fourth-quarter sales grew 19% year-over-year (11% in local currency) to $577 million, citing strong growth in all 5 segments ranging from 6% to 18% in local currency.

Rick Goings Chairman and CEO of Tupperware Brands commented, "We are encouraged with the progress we made in the fourth quarter and the full year in further refining and implementing our strategies, which are working and delivering the positive results we expected to support long term growth. This came through in the fourth quarter with our high-teen year-over-year sales increase and our 35% increase in GAAP diluted earnings per share. Our sales and profit were both well ahead of our October outlook."

TUP issued an adjusted full-year 2008 guidance of $2.50 to $2.60 per share. Three out of four covering analysts have current forecasts pegged $2.55 per share, up from last month’s $2.35.

The company’s earnings per share are expected to grow 17% over the next 3 – 5 years, which above the industry average expectation of 11%. TUP’s return on equity (ROE) of 31% also tops the industry average of 28%. These percentages are not only better than the industry averages but also increased since our November coverage of TUP.

Tupperware’s dividend yield of 2.5% is a rewarding one, especially considering the company ‘s packaging & containers industry.