Tupperware Brands Corporation is a global direct seller of premium products through an independent sales force of 2.8 million. Product brands and categories include design-centric preparation, storage and serving solutions for the kitchen and home through the Tupperware brand and beauty and for personal care products through its Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, and Nuvo.
Net income for the quarter was $47.5 million, or $0.85 per diluted share, compared with 2011 third quarter GAAP net income and EPS of $10.5 million and $0.17 per share, respectively, which included a non-cash impairment charge of $36.1 million or 60 cents per share. Adjusted diluted earnings per share of $0.95 in the quarter was 12 cents, or 14%, better than 2011.
Rick Goings, Chairman and CEO, commented, "Emerging markets, which comprised 66% of our sales, continued to perform well with 11% growth in local currency in the quarter. Our established markets, while down 3% in local currency, showed sequential improvement versus the second quarter. "
The company reported positive trend changes in the underlying performance indicators in most businesses. Looking forward to 2013, initial full year U.S. dollar and local currency sales guidance is for an increase in the 5 to 7% range. Longer-term sales increase guidance range continues to be 6 - 8% in local currency, with the 2013 range being 1 point lower reflecting current trends, with the implementation of changes in the current challenging environment.
The Company raised the high end of its full year diluted earnings per share guidance range, excluding items, by 8 cents versus the guidance range provided in July, of which 7 cents was due to the impact of stronger foreign exchange rates. EPS excluding items for 52 weeks ending December 2012 is now projected to be $4.94 to $4.99 compared to $4.45 for 53 weeks ending December 2011.
Trading on a multiple of 16.22 times historic earnings appears low for a company that has reported double digit annual EPS growth and growth of over 14% for the last quarter on a like for like basis. Yahoo finance reports average annual consensus earnings growth of 12.00% for the next 5 years
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Disclosure: The author holds no positions in Tupperware Brands and has no intention to initiate any in the next 72 hours.