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Why Tupperware Brands, Silicon Laboratories, and Hawaiian Holdings Slumped Today

By Dan Caplinger - Updated Apr 24, 2019 at 10:49PM

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Find out how these companies' latest financial reports hurt their shares.

Wednesday was a happy day on Wall Street, as optimistic views about the U.S. economy and an increased likelihood of further accommodation from the Federal Reserve combined to lift popular stock indexes by 1.5% to 2%. The Federal Open Market Committee left interest rates unchanged and signaled that future rate hikes would be slow in coming, and that gave investors the reassurance they needed that the central bank wouldn't be too aggressive in bringing the economic expansion to an end. Yet some companies had downbeat financial reports that sent their shares lower, and Tupperware Brands (TUP 0.35%), Silicon Laboratories (SLAB -2.20%), and Hawaiian Holdings (HA 2.66%) were among the worst performers. Here's why they did so poorly.

Tupperware takes a China hit, cuts its dividend

Check out the latest Tupperware Brands earnings call transcript.

Shares of Tupperware Brands plunged more than 27% after the maker of kitchenware and related products reported its fourth-quarter financial results. The company said that sales were down 14% in the quarter compared to the year-earlier period, with particular weakness in demand from the Chinese consumer market, and adjusted net income was lower as well. That prompted Tupperware to cut its dividend by 60%, with the intent of redeploying that capital toward efforts to grow and transform its business. CEO Tricia Stitzel said that the disappointing results were "leading to our desire to accelerate the business transformation to capitalize on our global growth strategy." Yet despite the sense of urgency, Tupperware shareholders seemed less than convinced of the ultimate success of the company's efforts.

Two women standing next to piled-up Tupperware containers.

Image source: Tupperware.

Silicon Labs sees challenges ahead

Check out the latest Silicon Labs earnings call transcript.

Silicon Laboratories saw its stock sink 14% following the release of its fourth-quarter financial report. The semiconductor company had generally favorable performance in its core businesses on a year-over-year basis, with the greatest increases in its infrastructure division. Yet Internet of Things, broadcast, access, and infrastructure sales were all down from third-quarter levels three months ago, and Silicon Labs cited "macro uncertainty and volatility" in projecting further declines in revenue in the first quarter. Until it becomes more apparent where in the business cycle the chip industry is right now, Silicon Labs could see further volatility in its stock.

Overcapacity hurts Hawaiian Holdings

Check out the latest Hawaiian Holdings earnings call transcript.

Finally, shares of Hawaiian Holdings finished lower by nearly 7%. The Hawaii-based airline said that its adjusted net income fell another 10% in the fourth quarter of 2018, continuing a streak of recent lackluster performance from the company. Despite favorable performance on some of the airline's international routes, Hawaiian's key routes between the islands and the U.S. West Coast showed deterioration in revenue per available seat mile. Moreover, Hawaiian sees the tough times continuing, and with the potential for higher costs ahead, shareholders seem to be preparing for a turbulent ride for at least the first part of 2019.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool recommends Hawaiian Holdings and Silicon Laboratories. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Silicon Laboratories Inc. Stock Quote
Silicon Laboratories Inc.
$143.38 (-2.20%) $-3.23
Tupperware Brands Corporation Stock Quote
Tupperware Brands Corporation
$11.41 (0.35%) $0.04
Hawaiian Holdings, Inc. Stock Quote
Hawaiian Holdings, Inc.
$16.59 (2.66%) $0.43

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