Tupperware Brands Corp. (TUP—NYSE) posted higher-than-expected earnings in the third quarter, while sales came in at the low end of management’s guidance.
In the quarter ended Sept. 24, the kitchenware company cleared a profit of $48.8 million, or 96 cents a share—a 35 percent jump from $36.2 million, or 72 cents a share, in the prior year. Analysts polled by Thomson Reuters had expected earnings of 80 cents. The bottom line was boosted by $24.2 million in pre-tax gains from real estate development adjacent to Tupperware’s Orlando headquarters.
Quarterly revenue was $521.8 million, edging above the prior year’s $521.0 million but missing the $528.1 million predicted by analysts. Emerging markets accounted for 71 percent of overall sales.
According to Chairman and CEO Rick Goings, “Despite this modest top line result, we once again delivered adjusted earnings above the high end of our range, demonstrating the dynamic flexibility of our business model, our strong leadership team and how we can navigate through challenging environments with our 3.1 million global salesforce and produce consistent results.”
On a regional basis, sales were up 30 percent in South America, driven by a 52 percent year-over-year increase—36 percent in local currency—in Brazil. Total active sellers in the segment rose 16 percent. Sales were flat in Asia Pacific and slightly higher in North America, while Europe sales fell 13 percent, or 7 percent in local currency.
Management expects fourth-quarter sales growth between 5 percent and 7 percent and earnings per share between $1.34 and $1.39.