Tupperware Brands Corp. (TUP), a direct seller of plastic food-storage containers, Wednesday said its third-quarter profit dropped from a year ago, hurt largely by lower sales as well as negative currency impacts, with both earnings and revenues falling short of Wall Street estimates. Tupperware shares tanked ten percent after the company cut its full year outlook.
Orlando, Florida-based Tupperware's third-quarter profit dropped to $32.3 million or $0.63 per share from $49.9 million or $0.95 per share last year.
Excluding special items, adjusted earnings were $0.90 per share, down from last year's $1.00 per share. On average, 8 analysts polled by Thomson Reuters expected earnings of $0.91 per share for the quarter. Analysts' estimates typically exclude special items.
Tupperware's sales for the third quarter dropped to $588.7 million from $603.2 million a year ago. Analysts had a consensus revenue estimate of $590.16 million for the quarter.
Chief Executive Rick Goings said, "Sales grew 4% this quarter in local currency with double-digit growth in Brazil, China, and Indonesia along with sequential improvements in CIS and Germany."
"Our emerging markets grew 8% in local currency. While this was down from the double-digit growth we have seen in the past, we expect to get back to that trend line as early as the fourth quarter," Goings added.
Moving ahead, the company expects fourth-quarter adjusted earnings of $1.55 to $1.60 per share. Analysts currently expect earnings of $1.70 per share for the quarter.
For the full year 2014, the company now expect adjusted earnings in the range of $5.21 to $5.26 per share, down from its prior outlook of $5.40 to $5.50 per share. Wall Street currently projects earnings of $5.39 per share for the year.
TUP is currently trading at $64.34, down $7.07 or 9.90%, on the NYSE.
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