Shares of Tupperware Brands Corporation (TUP 3.17%) jumped as much as 15.3% in trading on Wednesday after the company reported first-quarter 2021 financial results. Shares closed the day up 6.2%.
Revenue was up 22% compared to the first quarter of 2021 to $460.3 million, and the company swung from a net loss of $7.8 million to a profit of $45.3 million, or $0.85 per share. Analysts were only expecting $434.0 million in revenue and earnings of $0.54 per share.
Management said that North American sales were up 45% to $146.5 million to lead the business. And the company's digital tools to reach customers are helping them increase revenue around the world.
The strong earnings beat is the main reason shares are up today. But longer-term investors should be focusing on how Tupperware can improve its bottom line by increasing efficiency. For example, selling, general, and administrative expenses increased just 3% to $249.4 million, but still represent 54% of total sales dollars. If management can grow the top line and lower operating costs, the company could be a great growth stock long-term.