Shares of home and beauty product supplier Tupperware Brands (NYSE:TUP) jumped 40% early today, and remained near that level as of 11:40 a.m. EDT. The company crushed analyst estimates with strong earnings and revenue gains.
Tupperware reported adjusted earnings of $1.20 per share, almost quadruple its earnings from the year-ago period. Revenue rose 14% (21% in local currency) to $477.2 million, well above analyst estimates of $362.8, according to FactSet. The company credits its turnaround plan for the strong performance.
The increase in home cooking during the COVID-19 pandemic has more consumers looking for food-safety and storage products. But the company also believes its ongoing turnaround plan is responsible for the strong results. CEO Miguel Fernandez said in the release that the improved results in the past two quarters are a positive sign that the plan is working.
The company's plan, as discussed in its second-quarter earnings conference call, includes improving liquidity, addressing its cost structure, and improving Tupperware's core business.
In today's third-quarter release, chief operating officer Sandra Harris acknowledged progress with the plan, saying that sales of noncore assets have already improved the balance sheet "as we pursue the refinancing of our June 2021 obligations." The company says that so far in 2020, it has already realized $120 million of the $180 million cost savings targeted in its plan.
Investors have taken notice, even before today's jump in share price. Tupperware shares are up more than 230% since the start of 2020. Today's gains are an indication that more investors are believers in the company's turnaround.